Epic Games Lawsuit Win May Be Overturned If Google Gets Its Way

Google is asking a U.S. appeals court to overturn a lower court ruling in an antitrust case concerning Epic Games that would force the company to allow third-party app stores and alternative payment solutions in its Play Store. The decision would allow developers to bypass Google and its payment system, including enabling support for cryptocurrencies.

This ruling came after a jury found in December 2023 that Google violated antitrust laws by preventing rival app stores. Although the ruling is currently on hold, the appeals court could either uphold the decision or pause its implementation while the appeal by Google is pending. Oral arguments are scheduled for February 3rd, 2025, in San Francisco.

An Unfair Ruling

In a 110-page filing to the Ninth Circuit Appeals Court on November 27th, Google argued that the ruling would harm its ability to compete with Apple and the iPhone. The company claimed that the judge did not recognize the competition between Google and Apple in the smartphone market and should have followed the outcome of the lawsuit Epic made against Apple, which found that Apple did not violate antitrust laws.

Google also argued that the decision should have been made by Judge James Donato alone rather than through a jury trial, as in the Apple case, and that the ruling unfairly forces it to compete with other app stores, something Apple does not have to do.

Why Sue?

Epic Games sued both Apple and Google in August 2020, accusing them of unfairly restricting apps by requiring the use of their own payment systems, which charge a 30% fee, and preventing external payment methods. Epic introduced its own payment system in an effort to avoid these fees, leading both companies to remove its flagship game, Fortnite, in their app stores. This led to Epic filing lawsuits against both tech giants.

A key aspect of the case is the restriction on crypto payments within apps distributed through Google and Apple stores. Both platforms block crypto-based apps, including NFT marketplaces, including supporting payments in digital currencies, which limits the functionality of apps in the growing crypto space. This has been a major concern for developers and crypto enthusiasts, as it hinders the development of apps like NFT galleries that could benefit via blockchain-based payments.