bbieron@platformeconomyinsights.com

Google Faces Skeptical Judges in Appeal of Antitrust Loss to Epic Games

Feb 12, 2025

Report from Bloomberg

In Brief – Lawyers for Google and Epic Games faced off in front of a panel of US Ninth District Court of Appeals in Google’s challenge of its antitrust loss to Epic Games and the subsequent remedies crafted by Federal Judge James Donato. A jury ruled that Google violated federal antitrust law in the operation of its Android mobile operating system and the Google Play app store. Judge Donato then crafted remedies that include allowing app developers to stop using Google’s payments service that collects Google’s fees, requires Google to allow developers to distribute their own app store apps in the Play Store, and gives those third-party app stores access to all the apps available on the Play Store. Google argues that the jury ignored the robust competition between Apple and Android, in part due to improper instructions from Donato, and that their decision runs counter to the federal court ruling that Apple’s similar app store restrictions are legal. Google also argued that the trial should not have been before a jury and that Donato’s remedies go well beyond the facts of the case. The appeals court panel seemed especially skeptical of Google’s argument that their loss should be rejected because Apple won, as well as that they had a legal right to change to a bench trial very shortly before the trial was set to begin.

Context – Epic filed antitrust suits against both Apple and Google in 2020. Apple largely prevailed. Google lost. The fact that the “closed” Apple ecosystem with a larger market share was on the right side of antitrust law struck many as odd, but Apple had a bench trial while Google faced a jury of people potentially primed against Big Tech, and Google’s complicated regime of rules, contracts, and revenue-sharing deals, especially with device makers, proved problematic. Similar company practices were a big problem in Google’s antitrust loss to the US Department of Justice that determined they maintained a monopoly in online search. While Epic is challenging Apple’s compliance to an anti-steering order in another federal courtroom in California, both companies are facing demands to open app distribution in EuropeJapanSouth Korea and other markets.

View By Monthly
Latest Blog
Dutch Regulator Opens Digital Services Act Investigation of Roblox

Report from NL Times In Brief – The Netherlands Authority for Consumers and Markets (ACM) has launched a formal Digital Services Act (DSA) investigation of Roblox over concerns that the online gaming platform may not be doing enough to protect children. The DSA...

EU Commission Moves to Stop Meta from Banning Chatbots on WhatsApp

Report from Wall Street Journal In Brief – The European Commission has informed Meta that it plans to block the company’s ban on third-party AI chatbots from operating over WhatsApp. The antitrust regulator has reached a preliminary finding that Meta’s policy could...

Department of Justice and State AGs Appeal Google Search Remedies Order

Report from Bloomberg In Brief – The US Department of Justice has announced that it notified the Federal Court of Appeals for the District of Columbia that it will appeal US District Judge Amit Mehta’s remedies order in the federal antitrust lawsuit that found Google...

Governor Newsome Drops Funding for Media from California State Budget

Report from SFiST In Brief – The latest budget proposal from California Governor Gavin Newsom (D) has eliminated funding for the News Transformation Fund, a state initiative to pay millions of dollars to California media companies. The fund was announced in 2024 as...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required