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Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has lost its appeal in an Epic Games lawsuit, in which a judge previously ruled that the tech giant has to revamp its app store policies due to anticompetitive practices, Bloomberg reported on Thursday.
The decision was issued by the U.S. Court of Appeals for the Ninth Circuit, and as a result, Google Play Store will need to stop restricting developers from providing their own marketplaces for apps and billing systems, the report said.
Google had appealed the antitrust ruling from December 2023 when the jury favored the owner of the Fortnite game and said the company’s Play app store is operating as an illegal monopoly.
The jury had then found that Google monopolized the Android app distribution and payments market by charging app developers high fees of up to 30% and striking side deals with rivals to fend off competition.
“It is well established that antitrust remedies can and often must proscribe otherwise lawful conduct to unwind and further prevent violators’ anticompetitive activity,” Judge Margaret McKeown reportedly said.
“The district court had within its basket of remedial powers the authority to require Google to deal with parties harmed by its anticompetitive conduct, including its competitors.”
Google told the news outlet that the decision will “significantly harm user safety” and undermine innovation for Android.
“Our top priority remains protecting our users and developers and ensuring a secure platform as we continue our appeal,” Lee-Anne Mulholland, Google’s vice president for regulatory affairs, told Bloomberg.