In a significant development for the tech industry, Google has faced a setback in its ongoing legal battle with Epic Games. The US Court of Appeals for the Ninth Circuit has upheld a lower court’s ruling that mandates a comprehensive revision of Google’s app store policies. This decision is a pivotal moment in the antitrust case, compelling Google to remove restrictions that currently inhibit developers from establishing competing marketplaces and billing systems on the Android platform.
Judicial Insights
Judge Margaret McKeown articulated the court’s stance, emphasizing that antitrust remedies often necessitate limitations on otherwise lawful business practices to curtail anticompetitive behavior. She affirmed that the district court possessed the authority to mandate Google to engage with parties adversely affected by its conduct, including its rivals.
In response to the ruling, Google expressed concerns regarding the potential implications for user safety and innovation. Lee-Anne Mulholland, Google’s vice president for regulatory affairs, reiterated the company’s commitment to safeguarding its users and developers while maintaining a secure platform. “Our top priority remains protecting our users and developers, and ensuring a secure platform as we continue our appeal,” she stated in a comment to Bloomberg.
Market Reactions
The ruling comes on the heels of a jury verdict in December 2023, which found that Alphabet, Google’s parent company, had engaged in anticompetitive practices. These included financial incentives for manufacturers and developers to exclusively utilize its app store. Following the announcement of the court’s decision, Alphabet’s shares experienced a decline of over 2% during afternoon trading, reflecting investor concerns about the potential impact of the ruling on the company’s business model.
