Federal Appeals Court Questions Google’s Monopoly Defense in Epic Games Case

A federal appeals court panel in San Francisco appeared unconvinced by Alphabet Inc.’s argument that its competition with Apple Inc. in the smartphone market justifies overturning a jury’s 2023 verdict against its Google Play Store policies. The jury had ruled in favor of Epic Games, finding that Google engaged in anti-competitive practices by imposing restrictive policies and paying manufacturers and developers to use its app store exclusively.

Google’s lawyers contended that Epic should be bound by a prior court ruling in Apple’s favor, which determined similar policies were not antitrust violations. However, two of the three judges on the 9th Circuit Court of Appeals panel rejected the comparison, emphasizing the distinct nature of Apple’s and Google’s ecosystems. Google also argued that the trial judge, not a jury, should have decided the antitrust issues—a claim Epic’s legal team and the U.S. Justice Department opposed.

The case holds significant implications for Google, which generated over $14 billion from Play Store revenues in 2020 alone. The appeals court’s ruling could determine whether Google must lift restrictions preventing developers from offering rival app stores and payment systems, a change that could reshape the app marketplace.