Google’s Android App Store Ruled Illegal Monopoly in Blow to Tech Giant’s Walled Empire

In an antitrust ruling, a federal appeals court has upheld a jury verdict that labels Google’s Android Play Store as an illegal monopoly, a major blow to the tech behemoth already grappling with multiple monopoly judgments since late 2023.

The ruling, delivered unanimously by the Ninth Circuit Court of Appeals on Thursday, clears the way for a sweeping enforcement order that could dismantle Google’s tightly controlled app store model and introduce significant consumer choice in the Android ecosystem.

The decision marks a resounding victory for Epic Games, the company behind Fortnite, which has spent nearly five years challenging the dominance of both Google and Apple over app store ecosystems and their commission-heavy payment systems. Epic has long argued that the 15–30% cut taken by these platforms on in-app transactions stifles innovation and harms consumers and developers alike.

In December 2023, a jury found that Google had deliberately rigged the market to crush alternative app stores, a verdict that triggered an order from District Judge James Donato to restructure the Play Store’s operations. The order demands that Google make its 2 million+ app library accessible to rival platforms and actively help distribute those alternatives.

Google appealed, citing procedural inconsistencies and comparing the case to Epic’s failed attempt against Apple’s App Store. But the appeals court wasn’t convinced. In its ruling, the panel emphasized that Epic had “replete evidence” proving Google used anticompetitive tactics to entrench Play Store dominance.

What’s at Stake

While the Play Store isn’t as profitable as Google’s search engine or advertising empire, it remains a multi-billion dollar revenue stream for Alphabet Inc., driven by fees from app sales and digital purchases. That model now faces imminent disruption.

Unless Google wins more time, it will soon be forced to implement Judge Donato’s October 2023 order, opening the floodgates for rival app marketplaces and alternative payment gateways.

Google warns that the changes could expose users to greater security risks, potentially enabling hackers or scam apps to reach consumers. But Epic’s legal team has brushed those claims aside as “scare tactics” meant to protect Alphabet’s bottom line.

A Domino Effect?

This ruling is just the latest in a growing list of antitrust losses for Google:

• Last year, a judge ruled its search engine was illegally dominant.
• Earlier this year, its ad tech business was also deemed monopolistic.
• Now, a proposed breakup of Google’s advertising arm is set for trial in September.
• Meanwhile, the US Justice Department is weighing a move that could force Google to sell its Chrome browser and bar sweetheart search deals with companies like Apple.
  

Even Apple wasn’t spared entirely in Epic’s warpath: though the iPhone maker wasn’t labeled a monopoly, a court ruled it must allow links to external payment platforms, breaking its exclusive control over in-app transactions.