Legal Blow for Google as Appeals Court Upholds Verdict
A federal appeals court has upheld a jury verdict condemning Google’s Android app store as an illegal monopoly, paving the way for a federal judge to enforce a potentially disruptive shakeup aimed at providing consumers with more choices.
The ruling represents a major victory for video game maker Epic Games, which has been targeting Google’s Play Store for Android apps and Apple’s iPhone app store in an effort to bypass exclusive payment processing systems.
The jury’s rebuke of Google’s app store for Android-powered smartphones has led to a series of setbacks for the tech giant, including monopoly judgements against its search engine and digital ad network.
The Play Store for Android apps, although not as lucrative as Google’s other services, has been a significant revenue generator for the company through commissions on in-app transactions.
Following a trial, a jury found that Google had rigged its system to prevent alternative app stores from offering better deals to consumers and developers, leading to a mandated shakeup by U.S. District Judge James Donato.
Google’s appeal to overturn the jury’s finding was rejected by a three-judge panel, which upheld the verdict and ordered the company to make changes to promote competition.
Google has expressed concerns about the impact of the required revisions on user safety and choice, while Epic’s lawyers have dismissed these warnings as scare tactics.
In addition to the Play Store ruling, Google is facing further legal challenges that could result in significant changes to its business operations, including the potential sale of its Chrome web browser and a breakup of its advertising technology.
