Google loses app store antitrust appeal, must make sweeping changes to Play Store

The ruling, authored by Judge Margaret McKeown, affirms the jury's verdict and dismisses Google's objections. "The record was replete with evidence that Google’s anticompetitive conduct entrenched its dominance, causing the Play Store to benefit from network effects," wrote McKeown. "These remedies and their scope are supported by the record and the nature of the market, and we uphold them along with the liability verdict and the entire injunction."

A new era for apps

Google is running out of legal maneuvers to avoid rewriting the rules for Android apps. Having lost the appeal, Google appears poised to take the case to the US Supreme Court. However, there is no guarantee the high court will hear the case or rule in Google's favor if it does.

"This decision will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem," says Lee-Anne Mulholland, Google's VP of regulatory affairs. "Our top priority remains protecting our users and developers, and ensuring a secure platform as we continue our appeal."

Google was able to have Donato's 2024 order suspended while it pursued its appeal. Having notched another antitrust loss, the company may have to start implementing a sweeping list of changes. Google will need to stop requiring developers to use its Google Play billing system, opening up third-party payments that could earn developers more revenue. Google must also stop offering developers incentives for launching content exclusively on its platform for a period of three years.

The ruling also calls on Google to make some fundamental changes to how users find Android apps. It must make the full Google Play app catalog available for distribution on other app stores, but developers can opt out if they don't want their apps to be available more widely. Perhaps most devastating for Google, it will have to allow third-party app stores to be distributed within Google Play. Epic CEO Tim Sweeny celebrated the ruling, noting that it plans to release the Epic Games Store in Google Play soon.