Alphabet has lost its last-ditch bid to overturn Epic Games’ blockbuster antitrust win. In a unanimous decision on July 31, the Ninth Circuit Court of Appeals affirmed the 2023 jury verdict that found Google’s Play Store and in-app billing system to be illegal monopolies. The court also refused to pause a permanent injunction that compels Google to open Android to rival app stores and alternative payment options. Google can now petition the full Ninth Circuit or the US Supreme Court, but the reforms take effect while any further appeal plays out.
How the ruling unfolded
The three-judge panel, led by Circuit Judge M. Margaret McKeown, rejected Google’s claims that the trial judge misapplied antitrust law and improperly limited evidence about Apple’s competing App Store. The opinion cites “replete” proof that Google’s revenue-sharing deals and side-loading restrictions “entrenched its dominance” and harmed developers and consumers.
Epic’s lawsuit began in 2020 after Google pulled Fortnite for using a direct-payment link. A San Francisco jury later agreed that Google monopolises two markets: app distribution on Android and in-app billing for digital goods. District Judge James Donato issued a sweeping injunction in October 2024 but stayed it pending appeal. With that stay dissolved, Google must now implement the court-ordered changes.
What Google must do next
The injunction runs for three years and will be overseen by a technical committee. Key obligations include:
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Allow competing app stores to be downloaded directly inside Google Play
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Provide its full Play app catalogue and update pipeline to rival stores at no charge
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Let developers inform users about cheaper payment methods and link to external sites
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Permit third-party billing inside Play apps without punitive fees or feature degradation
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Stop offering exclusive deals or carrier/manufacturer payments that block rival stores
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Allow device makers to preload other app stores alongside Play without penalties
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Cap “reasonable security fees” if Google scans external apps for malware
Google may still apply baseline security checks, but the court bars it from delaying store approvals or using safety screens to steer users back to Play billing.
Why the decision matters
Android ships on three billion active devices, and Google Play processes most global app revenue outside China. By forcing interoperability at the store level, the ruling could slash Play’s 15-30 percent commission and reshuffle billions in annual payments. Developers gain new distribution channels, lower fees, and direct customer relationships, while consumers get genuine choice over app sources and prices.
Epic CEO Tim Sweeney hailed the verdict as “total victory” and confirmed plans to launch the Epic Games Store on Android later this year. Microsoft, Spotify, Coinbase, and dozens of smaller developers filed briefs supporting Epic, arguing that Google’s policies inflate costs and stifle innovation.
Google’s response and possible next steps
Google said the ruling “will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem.” The company will ask either the full Ninth Circuit or the Supreme Court to review the case. Success is unlikely: appellate courts rarely upset unanimous decisions that rest on extensive trial records.
In parallel, Google faces US Justice Department antitrust litigation over search practices and separate EU probes into its ad tech stack. Losing the Epic appeal weakens its negotiating position in those matters and signals that courts are increasingly willing to remake digital markets rather than rely solely on fines.
Impact on Apple and wider regulation
Although Epic largely lost its similar case against Apple, the Google outcome pressures Cupertino too. Lawmakers in the EU, UK, Japan, and several US states are drafting “open app market” bills that mirror Judge Donato’s remedies. If those proposals become law, Apple could soon face equal demands to allow third-party stores and direct billing.
Developer checklist for the Play Store shake-up
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Audit existing Play agreements and prepare dual-billing roadmaps
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Test downloadable versions of apps for side-store distribution
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Monitor Google’s forthcoming compliance documentation and deadlines
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Plan marketing pushes for late Q4 2025, when rival stores gain catalogue access
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Recalculate customer lifetime value with lower transaction fees
Google must publish compliance milestones within 60 days, so expect a detailed timeline by late September.
