| Epic Games v. Google | |
|---|---|
| | |
| Court | United States Court of Appeals for the Ninth Circuit |
| Full case name | Epic Games, Inc. v. Google Inc. |
| Decided | July 31, 2025 |
| Court membership | |
| Judges sitting | M. Margaret McKeown, Danielle J. Forrest, Gabriel P. Sanchez |
Epic Games v. Google is a lawsuit brought by Epic Games against Google in August 2020 in the Northern District of California, [1] and later ruled upon under the name In re Google Play Store Antitrust Litigation by the Ninth Circuit Court of Appeals in 2025. [2]
Filed concurrently with Epic Games v. Apple , Epic challenged Google's monopolistic practices in its Google Play Store while selling apps for its Android devices. A jury trial was held in late 2023, with the jury finding for Epic on all counts, and ruling that Google violated anti-trust laws in maintaining the Play Store as the only practical app store for Android. The charge included Google's practice of making deals to ensure apps would be solely published through the Play Store and requiring the Play Store to be installed on third-party devices. The court ordered Google to allow alternate app stores on the Android system and temporarily restricted the company from offering monetary benefits to developers that released exclusively on Google's Play Store. The decision was upheld on appeal to the Ninth Circuit.
Google operates the Google Play Store for Android devices. Similar to Apple and its App Store for iOS devices, Google takes a 30% share of the revenue from all sales made through the Play Store, including in-app purchases. This 30% revenue share was comparable to what other digital storefronts, like Steam, require as of 2019. [3]
Tim Sweeney, the CEO of Epic Games, had been outspoken about this 30% fee, believing that storefronts could significantly reduce this while still being profitable. [4] [5] Part of the reason for launching the Epic Games Store was to show that Epic could operate its own app store while taking only a 12% revenue share. [6] [ failed verification – see discussion ] Epic released Fortnite Battle Royale for computers and consoles in 2017 as a free to play title supported by microtransactions, allowing players to buy in-game "V-bucks" currency for cosmetic items. When Fortnite was brought to mobile devices in 2018, Epic initially released the game through sideloading to avoid forwarding Google any revenue from in-game sales. However, this led to a number of clones, some with malicious behavior, appearing in the Google Play Store and masquerading as the real Fortnite game. Epic eventually discontinued the sideloaded version in favor of a legitimate Google Play version in 2020. [7]
On August 13, 2020, Epic initiated "Project Liberty", a plan to challenge the 30% revenue fees collected by the Google and Apple app stores. [8] Both the Android and iOS versions of Fortnite were updated with code to allow players to buy V-bucks directly from Epic alongside the respective storefront, providing a better deal for those buying directly from Epic. This practice violated the allowable terms for apps for issued by Google and Apple, and Fortnite was removed from these storefronts that same day. [9] [10] Epic used this action to file federal lawsuits it had prepared against both Google and Apple in the United States District Court for the Northern District of California, asserting the companies engaged in anti-competitive behavior. [11]
In initiating the lawsuits against Google and Apple, Epic did not seek monetary damages but instead was "seeking injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers and tens of thousands, if not more, of third-party app developers." [12] In comments on social media, Sweeney said that they undertook the actions because "we're fighting for the freedom of people who bought smartphones to install apps from sources of their choosing, the freedom for creators of apps to distribute them as they choose, and the freedom of both groups to do business directly. The primary opposing argument is: 'Smartphone makers can do whatever they want.' This as an awful notion.We all have rights, and we need to fight to defend our rights against whoever would deny them." [13]
With the exception of an order against Apple to allow some times of in-app advertising, Epic lost its case against Apple while the Google case was in progress. [14] In the meantime, Epic joined with smaller tech firms like Match.com and Spotify to create the Coalition for App Fairness, an advocacy group to challenge Apple and Google's practices on their respective app stores. [15] The Match Group, which runs several platforms including Tinder and Match.com, launched its own lawsuit against Google over its app store policies in May 2022, also complaints similar to those raised by Epic. [16] Google and Match Group settled in November 2023, ahead of Epic's trial, with Google paying Match Group $40 million and allowing Match Group to use its User Choice Payment system. [17]
In its specific claim agianst Google, Epic argued that Google used aggressive deal-making with partners to maintain the strength of the Google Play Store within the Android operating system. [18] Google, in response to the lawsuit, stated to The Verge that "For game developers who choose to use the Play Store, we have consistent policies that are fair to developers and keep the store safe for users. While Fortnite remains available on Android, we can no longer make it available on Play because it violates our policies. However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play." [19] Google also distanced itself from the Apple case, asserting that the Android operating system does not have the same single storefront restriction as Apple's iOS, and thus allows different Android phone manufacturers to bundle different storefronts and apps as they desire. Google said they negotiated with Epic Games far differently than Apple did. [20]
Google countersued Epic in October 2021, asserting that by introducing a version of Fortnite that did not use Google Play's payment systems, Epic had violated their contract with Google, and because that version of the game could be obtained in other formats outside of Google Play. Thus, Epic "has alternatively been unjustly enriched at Google's expense", and seek to recover monetary damages from this version. [21]
While the jury trial was pending, Google was sued in July 2021 by a coalition of 36 states and the District of Columbia over its app store practices, mirroring several of the complaints Epic had filed under. [22] That lawsuit was settled in September 2023, with Google agreeing to pay $700 million as part of the settlement. In addition, Google stated they would allow selected apps to use a new User Choice Billing option, which lets apps charge users directly without having to go through the Play Store payment system, though developers would still need to pay a 26% revenue sharing fee back to Google. The settlement also loosened requirements for third-party storefronts in sharing space with the Play Store. [23] [24]
The jury trial was held in late 2023 with District Court Judge James Donato presiding. [18] Epic was able to show the numerous deals that Google had made with various partners to maintain the strength of the Google Play store and disadvantage other storefronts. Among these was "Project Hug", an effort to work with twenty mobile publishers to keep their games and apps within the Play Store, with hundreds of millions of dollars used to maintain this agreement. [25] Similarly, "Project Banyan" referred to a deal made with Samsung Electronics to weaken the impact of their Galaxy Store on Android devices. [25] Epic showed that Google had become concerned about Epic's actions and saw them as a disruptor that might encourage other developers to follow Epic's approach of sideloading their games to avoid the Play Store and potentially cost them $2 billion a year in revenue. Google appeared to have looked into acquiring a controlling portion of Epic to discourage this strategy. [25] Epic also discovered that Google had made a number of sweetheart deals with specific apps to avoid or reduce Play Store or User Choice Billing fees, such as with Spotify and Netflix. [25] Google was also found to have deleted certain chat messages that were relevant to the case, which was said to undercut Google's credibility to the jury. [26]
The jury deliberated and returned with its verdict on December 11, ruling on all eleven counts in favor of Epic. The jury affirmed that Google had engaged in anti-competitive practices both with the Play Store and its billing system, and maintained its monopoly through deals with partners using its dominant position in the overall technology market. The jury also found that Google furthered its position by requiring the Play Store to be installed on third-party Android hardware such as Samsung phones. [26] Determination of relief given the jury's findings was scheduled to take place starting in January 2024, while Google stated its intent to appeal the decision. [26]
Epic submitted recommendations for injunctions that the District Court could place on Google, based on the jury's decision, including preventing Google from initiating deals like "Project Hug" to discourage developers from releasing apps to third-party app stores, prohibiting the tying of Google Play with operating systems on other Android phones, and prohibiting anti-steering strategies. [27] Hearings on the proposed injunctions were held in August 2024. [28] In October, Judge Donato issued a permanent injunction requiring Google to allow alternative app stores on Android phones. For the following three years, Google would not be permitted to pay or provide discounts to developers that release exclusively through the Play Store. Google's compliance would be overseen by a three-person committee of employees of both companies. [29]
Google appealed the District Court's injunctions and requested an emergency stay from the Ninth Circuit Court of Appeals. [30] [31] The stay was granted to allow Google time to develop its appeal, though the company was prohibited from making deals with Android phone manufactures in exchange for blocking third-party app stores. [32] Google attempted an appeal to the U.S. Supreme Court, but the high court declined to review the case, thus leaving the injunctions intact. [33] Epic stated immediately after this decision that they intended to bring Fortnite and the Epic Games Store to Google Play in the U.S. [34]
Epic and Google announced a proposed settlement in November 2025, with Google offering to reduce its take on store purchases to between 9 and 20%, and to allow apps like the Epic Games Store to register as allowed app stores on Android in all regions of the world. [35] Judge Donato expressed concern about the terms of this settlement, as it would not change signifantly change the practices at Google that were deemed anti-competitive by the jury in the original District Court hearing. [36]