The Epic Showdown Continues: Google Fights to Keep Control Over Its Play Store
The battle between Epic Games and Google over app store practices isn’t over yet. After Epic’s win in the courtroom, which would force Google to open up its app store to third-party payment systems and alternative marketplaces, the tech giant has decided to go for round two. Google is now appealing a federal judge’s ruling, hoping to reverse the decision that could fundamentally change how apps and payments work on Android devices.
In late November 2023, Google filed a 110-page legal brief with the Ninth Circuit Appeals Court, requesting that the decision made by US District Judge James Donato be overturned. The ruling, which sided with Epic Games, would require Google to allow third-party app stores and alternative payment methods to operate on its Play Store — potentially shaking up the entire Android ecosystem.
Google’s Argument: Why the Tech Giant Wants the Rules to Stay the Same
So, why is Google so keen on keeping things the way they are? Well, the company argues that the judge’s decision will seriously harm its ability to compete with Apple in the smartphone market. According to Google, forcing them to open up their Play Store to other app stores and payment options would unfairly disadvantage them in the ongoing competition with Apple’s App Store, which currently operates in a very similar, but closed, ecosystem.
In its appeal, Google claimed that the California federal court had misunderstood the nature of the competition in the smartphone market. Google believes the court should have followed the earlier decision in Epic’s lawsuit against Apple, where another judge ruled that Apple had not violated antitrust laws. Google argues that, just like Apple, it should be able to control its app marketplace and payment system without the interference of third-party solutions.
Additionally, Google contended that Judge Donato should have ruled on the case himself, rather than sending it to a jury trial. This is especially notable because Epic’s case against Apple didn’t involve a jury trial, and Google feels that this inconsistency puts it at a disadvantage.
Epic Games vs. Google: The Origins of the Battle
The Epic Games vs. Google conflict began in earnest back in August 2020, when Epic sued both Apple and Google separately. Epic accused the tech giants of using their monopolistic power to enforce strict payment rules within their app stores — particularly the 30% fee both companies take from all purchases made through their platforms. This fee has long been a point of contention, with developers complaining that it cuts deeply into their profits.
Epic’s move to bypass the payment system on both platforms by introducing its own direct payment method within the popular game Fortnite was the catalyst for the legal battle. When Apple and Google removed Fortnite from their stores for violating their terms of service, Epic responded by filing lawsuits against both companies, accusing them of anticompetitive behavior.
In Google’s case, the lawsuit focused on how the company restricted third-party payment systems and limited the possibility of crypto payments on the platform. This restriction has significant implications for crypto-native apps like NFT marketplaces, which rely on alternative payment systems to operate. These platforms have long argued that the major app stores’ payment policies restrict their ability to offer crypto-friendly services, further cementing the battle over app store dominance.
The Impact of Judge Donato’s Ruling: What Would Change for Google?
In December 2023, after a jury ruled that Google had indeed violated antitrust laws by blocking third-party app stores and payments, Judge James Donato issued an order requiring the company to make some significant changes. His ruling demanded that Google drop its restrictions on outside payment systems within apps on the Play Store. Additionally, Google would have to allow developers the option to distribute apps from third-party stores, similar to what was happening in Epic’s ongoing fight with Apple.
The ruling, if upheld, would have far-reaching effects on both Google and Android developers. For example, Google would no longer be able to force apps to use its payment system, opening the door for crypto payments and potentially lower fees for developers. It would also pave the way for new app stores to compete with Google’s, which could lead to more variety and flexibility for Android users.
However, that ruling is on hold for now, as the appeals court considers Google’s request to reverse the decision. Until then, it’s a waiting game, with the court set to hear oral arguments on February 3, 2025, in San Francisco.
What’s at Stake for Google, Epic, and the Industry?
So, what’s really at stake in this high-stakes legal battle? The future of digital marketplaces is front and center, especially as app stores like Google’s Play Store and Apple’s App Store face increasing scrutiny from regulators and developers alike.
For Google, the outcome of this case could dramatically change how it runs its business. If the ruling stands, the company might have to adopt new policies that would allow developers to take alternative payment methods (including crypto) and possibly lower the 30% commission that has been a hallmark of its business model for years. This could set off a ripple effect across the industry, challenging Apple’s App Store policies as well.
For Epic Games, a victory in this case would be a massive win for its broader goal of fighting against what it views as monopolistic practices in the app store ecosystem. If Google is forced to open its doors to third-party stores and payment systems, Epic could see its own Fortnite app return to the Play Store without the stringent payment restrictions. Moreover, this decision would provide a template for how Epic could further challenge Apple, potentially leading to more favorable conditions for developers and consumers alike.
And then, there’s the crypto industry, which has long felt stifled by the restrictions on app store payments. If these changes go through, it could create new opportunities for crypto-related apps to thrive, offering NFTs, decentralized finance (DeFi), and web3 apps a much-needed foothold on the world’s largest mobile operating systems.
The Bottom Line: A Case to Watch
In the end, this is more than just a fight between two gaming giants. It’s about the fundamental structure of the app store economy—who controls it, and how. Will Google and Apple continue to hold the reins, or will third-party solutions rise to challenge their dominance? The decision made by the Ninth Circuit Appeals Court could set the tone for the entire tech industry, shaping how we use our smartphones and digital services for years to come.
As the February 2025 date approaches, the world will be watching closely to see which way the wind blows in the ongoing battle over app store monopolies. Will Epic Games’ David continue to outsmart Google’s Goliath, or will the tech giant find a way to maintain its grip on the market? Stay tuned—the outcome could change everything.
