Google’s Appeal to Overturn Monopoly Verdict: The case of the legal battle over the Google App Store
Google has recently filed an appeal with the 9th U.S. Circuit Court of Appeals in a legal battle with Epic Games, as a jury recently made a ruling in favor of the maker of the popular game “Fortnite.” Google is convicted in the verdict of using monopolistic conduct within the context of Google App Store and Android OS by excluding competitive distribution of competing application stores on Android.
In the very detailed argument, Google has noted that the trial judge committed numerous legal mistakes that were prejudicial to Epic Games. The tech giant accuses the judge of bias in the case and of prejudging the matter that has resulted in an order to Google to change its app store policies. In particular, Google stated that the necessity to change the Google App Store appearance significantly would negatively affect app developers and customers. The company’s appeal comes after a San Francisco jury supported Epic Games, stating that Google was engaging in anti-competitive practices.
The Lawsuit’s Origins
The legal action has its origin in 2020 when Epic Games accused Google of anticompetitive control of the distribution of applications on devices with the Android operating system and restrictions on how in-app purchases are conducted. Epic accused Google of abusing its dominance by mandating that app developers use Google’s billing system and thus excluding alternatives that would make it cheaper for consumers.
One of the conditions of the judgment made in October 2024 was to require Google to allow third-party Google App Store on its Android operating system. Moreover, the court stated that Google cannot prevent apps from using their own payment methods, so now developers can use their own billing systems. Google’s argument is that the measures would compromise security and result in a decrease in privacy and user experience.
Google’s Grounds for the Appeal of the Ruling
Google claims that the trial judge was wrong to allow Epic Games to bring the lawsuit to a jury trial as the case should have been about the potential losses Google has incurred and not on the changes Google App Store needs to make. The company also claims that the judge erred in allowing Epic to argue that Apple and Google are not competitors in app distribution and that this prejudiced the jury. Google also complains that the injunction that the judge has granted is against users and developers across the country, not the plaintiff.
Additionally, Google’s filing argues that the decision makes the company the central planner of product design, which the company states interferes with its discretion over the platform. Google’s lawyers also said that such an order could be used in other cases to threaten the independence of technology companies to manage their platforms in any way they wish.
Epic Games’ Rebuttal
Epic Games, in turn, has referred to Google’s appeal as a “frivolous” effort to evade following the jury’s decision. Epic explains Google’s arguments as being illogical and an effort to keep the company in control of the app distribution service. The company has complained that Google is using its legal muscles to prevent necessary changes to the Google App Store.
Epic also underlines that the decision should help make the market for apps and their developers more equitable for users. According to Epic, by applying pressure on Google to open its platform and let third-party stores, users will be offered better choices for app downloads and in-app purchases.
International Implications
The case of Google and Epic Games is not only being followed in the United States but also worldwide. For example, the Competition Commission of India (CCI) has opened an investigation into Google for violating Section 4 of the CA by allegedly using its dominance in the market of online advertising. The allegations are almost identical to the ones Epic Games field and involve accusations that Google restrains competition and forces companies to use its platforms.
To the Google App Store, the implication of this case could lead to a change of the way that it conducts business in the future. If the 9th Circuit affirms the jury’s decision then it will open the door for more competition in the app store industry, within America and internationally. On the other hand, if the court supports Google, it will continue with the current model of distributing apps and in-app payment solutions. And as this legal fight continues, the tech sector is taking note, as it appears poised to establish a massive new antitrust regime for the digital market.
source:: thehindu.com
