Epic Games has won a major legal victory against Google, as the Ninth U.S. Google was found guilty in 2023 of illegally monopolizing Android app distribution and billing, a verdict recently upheld by the Circuit Court of Appeals, which now enforces a permanent order to introduce real competition in the Play Store.
Judge Margaret McKeown, writing for the appeals panel, opened with a nod to Fortnite’s high-stakes world, contrasting it with the legal process based on “longstanding principles of trial procedure, antitrust, and injunctive remedies.”
Key Findings and Why Google Lost
The court found that Google violated antitrust laws by using its dominance to control how apps are distributed and how payments are processed on Android. It relied on contracts, revenue-sharing deals, and technical barriers to stifle competition—actions the court ruled were “anticompetitive.”
The panel rejected Google’s argument that the earlier Apple case should have influenced the outcome here. Instead, it said the “market realities” between iOS and Android are fundamentally different. Apple operates a “walled garden,” while Google claims an “open distribution model,” and that openness is exactly what made Google’s restrictions unlawful in this context.
The court also agreed with the jury’s conclusion that Google’s control over Android app billing and distribution formed two distinct and unlawful monopolies. As a result, the earlier stay on the injunction was lifted, meaning Google must begin making changes immediately.
What the Injunction Requires
With the court’s ruling now active, Google is required to make significant changes over the next three years, including:
- Allowing third-party app stores to be listed and distributed through the Play Store
- Providing those rival stores access to the Play Store’s full app catalog
- Permitting app developers to use billing systems outside Google Play Billing
- Ending financial deals with OEMs or developers that discourage competition
Compliance will be monitored by a technical committee appointed jointly by the court and the involved parties.
How Epic Framed Its Case
Known as “Project Liberty” within the company, Epic’s legal approach was designed around a clear challenge. The company inserted hidden code into Fortnite that bypassed Google Play Billing, knowing it would get the game removed from the Play Store. This action, which Epic never denied, was framed as a necessary protest to expose Google’s control.
During the trial, Epic presented internal Google documents showing executives feared Epic might encourage other developers to create rival app stores. The jury also saw evidence that Google paid developers and phone makers—through programs like “Project Hug”—to stay exclusive to its Play Store and avoid competing channels like Samsung’s Galaxy Store.
Epic’s Response
Epic CEO Tim Sweeney called the ruling a “total victory” and confirmed that the Epic Games Store for Android will now be coming to the Google Play Store. This would have been impossible under Google’s previous restrictions, but is now enabled by the court’s decision.
Impact on Google
While Alphabet does not disclose Play Store-specific earnings, analysts estimate Google generates around $50 billion in annual gross sales through the store. With the forced support for third-party billing, Google could face a 20–30% drop in those sales, resulting in a projected $1–1.5 billion hit to gross profit.
Google’s Reaction and Appeal
Google said in a statement, the decision “will significantly harm user safety,” adding that it could also undermine the innovation that makes Android competitive. The company plans to appeal the ruling further—likely to the U.S. Supreme Court—but it must still begin implementing the court-ordered changes while the appeal proceeds.
Conclusion
The ruling in Epic v. Google is one of the most important antitrust decisions in recent tech history. It opens the Android ecosystem to real competition, gives developers more control over their app distribution and billing, and restricts Google’s ability to use its dominance to shut out alternatives.
While Google may continue its legal fight, the Ninth Circuit’s decision has already started reshaping Android’s future—and this time, the monopoly isn’t game over for Epic, it’s a restart for everyone else.