Google asks appeals court to reverse Epic Games’ antitrust case win

Google asked a United States appeals court to toss a lower court’s ruling in Epic Games’ antitrust suit that would force it to allow third-party app stores and payment solutions through its Play Store marketplace.

The lower court decision would open Google’s app store and apps to other payment systems, including crypto-supporting ones.

Google argued in a 110-page filing to the Ninth Circuit Appeals Court on Nov. 27 that the California federal court decision would “directly undercut Google’s efforts to compete against Apple and the iPhone.”

The tech giant argued that the judge should have realized Google competes with Apple on smartphones and mirrored the decision of another judge in Epic’s case against Apple, which found the iPhone maker didn’t violate antitrust laws.

Google claimed that the judge should have ruled on the case himself and not held a jury trial, because Epic’s case against Apple didn’t have one. Google also said the ruling forces it to compete with rival app stores, which Apple doesn’t have to do.

Highlighted excerpt of Google’s argument to overturn Epic’s federal court win. Source: PACER

Epic sued Apple and Google separately in August 2020, accusing them of unfairly restricting apps on their app stores by using only their payment systems — which take a 30% cut of all purchases — and blocking apps from using outside systems.

Epic attempted to skirt Apple and Google’s fees by launching its own payment system in its app, which led to the two tech giants cutting Epic’s flagship game, Fortnite, from its app stores. Epic then sued both firms.

Apps distributed through Apple and Google’s app marketplaces don’t support payments in crypto, severely restricting the functionality of crypto-native apps like non-fungible token (NFT) marketplaces, some of which function as little more than art galleries.

US District Judge James Donato last month ordered Google to drop its outside payments restriction for apps on its Play Store and let developers provide options for users to download apps from outside Google’s marketplace.

This came after a jury found in December 2023 that Google violated antitrust laws by blocking rival app stores.

That decision and Judge Donato’s order are now on hold. The appeals court could choose to uphold his order while Google’s appeal plays out, or pause on forcing the tech giant to make changes to its app store until an outcome is decided.

Oral arguments are slated to be heard at the San Francisco-based court on Feb. 3, 2025.

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