Google Appeals Antitrust Decision, Asks Supreme Court to Halt App Store Changes

Google Appeals Antitrust Decision, Asks Supreme Court to Halt App Store Changes

Introduction

Alphabet's Google has urged the U.S. Supreme Court to halt key parts of a judge's order that would force major changes to its app store Play, as it prepares to appeal a decision in a lawsuit brought by Epic Games, the maker of "Fortnite."

Factual Background

Epic Games sued Google in 2020, accusing it of monopolizing how consumers access apps on Android devices and pay for transactions within apps in violation of U.S. antitrust law. The jury sided with Epic in the trial, finding that Google illegally stifled competition. The bench of U.S. District Judge James Donato subsequently issued an order directing Google to make changes to its app store, including allowing users to download rival app stores and making Play's app catalog available to competitors.

Procedural Background

Google has denied wrongdoing and plans to appeal the decision to the Supreme Court. The company has asked the court to decide by October 17 whether to put the order on hold. A three-judge panel of the 9th U.S. Circuit Court of Appeals upheld the injunction, and the full 9th Circuit declined Google's request to review the panel's decision.

Issues

• Antitrust Law: The lawsuit brought by Epic Games accuses Google of violating U.S. antitrust law by monopolizing the app store market.
• App Store Changes: The judge's order requires Google to make significant changes to its app store, including allowing rival app stores and external links.

Contentions of the Parties

Google's Contention: Google argues that the judge's order would cause reputational harm, safety and security risks, and put the company at a competitive disadvantage. Google claims that the changes will have enormous consequences for more than 100 million U.S. Android users and 500,000 developers.

Epic Games' Contention: Epic Games argues that the court's injunction should go into effect, allowing consumers and developers to benefit from competition, choices, and lower prices. Epic Games claims that Google is relying on "flawed security claims" to justify its control over Android devices.

Reasoning and Analysis

The Supreme Court will need to consider the antitrust implications of Google's app store practices and the potential consequences of the judge's order. The court's decision will have significant implications for the tech industry and the future of app store competition.

Implications

The outcome of this case will have significant implications for Google, Epic Games, and the broader tech industry. If the Supreme Court upholds the injunction, Google may be forced to make significant changes to its app store, potentially altering the competitive landscape of the industry.