Google's Appeal Against Epic Games Verdict: New Developments in App Economy Dispute

Besides Epic Games vs. Apple, Epic Games vs. Google is one of the most critical cases in recent history regarding the reshaping of the app economy and business models of some of the biggest tech companies. Whereas Apple won the first case, Epic Games won the legal battle against Google, which marked a significant moment in legal disputes between tech giants.

Several months after Judge James Donato announced the decision to order Google to open its Play Store app for competitors, a new chapter in this groundbreaking legal dispute opened.

Origins of the Epic Games vs. Google Legal Battle

The case lawsuit was initiated in 2020 by Epic Games (Epic). In 2023, the decision that Google established an illegal monopoly through its Google Play Store app and Google Play Billing services was made. 

In addition, in 2024, Google was ordered to enable users to download competing third-party Android app platforms or stores between November 1, 2024, and November 1, 2027. Moreover, Judge Donato's ruling prohibited Google from entering into revenue-sharing agreements with any party that distributes or plans to launch Android apps, stores, or platforms.

Furthermore, Google was ordered not to incentivize developers to launch their apps on the Play Store or not to launch on competitors' stores. Google was also instructed not to offer mobile device makers and carriers financial or other incentives for pre-installing the Google Play Store.

Finally, the ruling gave Google eight months to develop and establish a three-member Committee with Epic to settle any disputes related to the verdict.

However, on October 11, 2024, Google submitted its appeal against the decision. On October 16, Google asked the ruling Court to pause the imposed changes to Android and Google Play platforms as its legal battle in the underlying case before the Court of Appeals continues.

Reasons Behind Google's Appeal

Google appealed against the underlying decision for several key reasons. As stated by Google, the first one is that Apple and Google compete directly for consumers and that Android and iOS compete in the same market. Therefore, they are challenging the decision's conclusion that Android is a market.

Furthermore, Google stated that it competes with Apple for app developers. More specifically, Google claims that both Apple and Google dedicate resources to building tools, training programs, and other investments to make it as easy for developers as possible to develop apps for their respective app stores. Therefore, just like Apple, Google is trying to convince developers to build their apps for Android and release them first on the Google Play Store.

Google underlined that Android, unlike iOS, is an open platform and that Google Play is not the only store where apps can be downloaded. For example, Google stated that Epic Games used the Samsung Galaxy Store to make Fortnite available to Android users.

Therefore, most of Google's appeals arguments are based on the ruling in its dispute with Epic and the case ruling in Apple's favor against Epic.

Epic’s Response to Google's Administrative Motion and Appeal

Regarding the administrative motion that Google submitted on Judge Donato's decision, Epic underlined that the primary reason that Google seeks a temporary administrative stay on all aspects of the ruling is that it will give sufficient time for the Court of Appeals for the Ninth Circuit (Court of Appeals) to decide if a stay pending appeal is warranted.

However, Judge Donato granted Google a temporary administrative stay on all but one specific piece of the ruling. This means that while Google will not have to open up its Play Store, it will have to refrain from making incentivizing deals with carriers or device makers between November 1, 2024, and November 1, 2027.

The latest decision from Judge Donato means that the Court of Appeals will decide whether to grant the temporary stay as part of Google's appeal. If granted, it could be years before Google is required to open its app store.

Nevertheless, Epic argued that the Court of Appeals should reject Google's statements, adding that the Android app market has suffered for years due to anti-competitive behavior. Additionally, Epic stated that Google's claims that changes would lead to issues with users' privacy and security are invalid.

Broader Industry Reaction

Although the outcome of the dispute between Epic and Google will be known in months, industry representatives have already expressed some concrete reactions. Telefonica, one of the largest mobile carriers in the world, which provides services in the UK, Spain, Germany, and Latin America, announced that it will preinstall the Epic Games Store on every new compatible Android phone it sells, including Samsung.

Telefonica's decision is not surprising. Epic and Telefonica have been partners since 2020 when Telefonica allowed its customers in Spain to link their Fortnite purchases to their phone bills. In addition, Microsoft, the US Justice Department, and the Federal Trade Commission also publicly backed Epic's efforts to dismantle Google's alleged monopoly on the Android market.

Conclusion

The Court of Appeals is expected to make its decision later this year. However, whatever its decision, the losing party, either Epic or Google, will almost certainly bring the case before the Supreme Court as the last deciding instance. Therefore, the legal battle between these tech giants will not end soon, and the outcomes and results of this dispute will be seen in years to come.

Additionally, this dispute may have broader consequences. For example, it will be interesting to see how Samsung reacts to Telefonica's decision to preinstall the Epic Games Store on Samsung phones that it sells to its customers. Moreover, it remains to be seen how other mobile carriers will react and whether they will follow Telefonica's example or wait until the dispute is settled before making any decision.

Source: VATabout, The Verge - Google appeals judge’s decision, The Verge - Epic judge lets Google keep its Android app store closed to competitors, The Verge - Epic’s dream is starting to come true, United States Court of Appeals for the Ninth Circuit, Epic Games Opposition to Google Administrative Motion, Google