Google has lost its bid to overturn a US court ruling that forces it to open the Android ecosystem to third-party app stores and billing systems. While the decision applies to the US, it could have global consequences, including in Australia, where legal action and regulatory scrutiny around Google’s app store dominance have been building for years.
The appeals court ruling stems from a case brought by Epic Games, following a 2023 jury verdict that found Google’s Play Store policies were unlawfully anti-competitive.
The decision clears the way for a sweeping injunction that will compel the tech giant to allow rival marketplaces, loosen control over in-app billing, and end exclusive arrangements with device manufacturers.
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The ruling is reminiscent of a similar decision involving Apple back in June, which was also triggered by Epic Games. This forced the iPhone-maker to allow developers to include external payment links.
In Google’s case, the ruling took things further with the court backing a structural overhaul of how Android apps are distributed and monetised, removing the company’s ability to block competition and enforce in-house billing.
Google’s defence rejected, enforcement begins
Google, in a statement, said the decision would “significantly harm user safety” and undermine Android’s ability to protect users.
The company has confirmed it will appeal to the US Supreme Court, but the stay on the injunction has already been lifted, allowing enforcement to begin while appeals are ongoing.
Epic CEO Tim Sweeney welcomed the ruling, confirming the company will launch its own app store on Android.
“Thanks to the verdict, the Epic Games Store for Android will be coming to the Google Play Store,” he posted on X.
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The ruling also reaffirms that US courts are willing to impose strong remedies in antitrust cases, even if the conduct itself was previously considered lawful.
In her judgment, Judge Margaret McKeown wrote: “antitrust remedies can and often must proscribe otherwise lawful conduct to unwind and further prevent violators’ anticompetitive activity”.
The panel found Google’s behaviour, including paying phone manufacturers and large developers to favour its store, created significant barriers to competition.
Why the Google ruling matters for Australian app developers, small businesses and startups
It’s still unclear how much the ruling could cost Google. Analysts at Bloomberg Intelligence estimate changes to billing rules alone — particularly in gaming and subscription-heavy sectors — could slash the company’s gross app store revenue by 20–30%, or up to US$1.5 billion in profit annually.
For developers, though, the potential upside is significant. Whether building subscription-reliant SaaS platforms, medtech tools or anything in between, smaller players have long argued Google’s 15–30% commission model makes profitability harder, particularly without the bargaining power enjoyed by global giants like Amazon, which has reportedly negotiated discounted rates and exemptions from standard billing rules in the past.
Here in Australia, the decision lands just months after the ACCC’s final report into digital platform services called out both Apple and Google for their dominance over app marketplaces.
The watchdog backed targeted reforms to improve transparency around commission structures, expand third-party payment access, and better protect developers and consumers.
Separately, the Federal Court is still considering a class action against Apple and Google, alleging both companies abused their market power to impose excessive fees and restrict fair access to payments.
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Led by Maurice Blackburn and Phi Finney McDonald, the case was expanded in 2023 to include app developers alongside consumers. At the time, Maurice Blackburn described the behaviour as “an egregious misuse of market power”.
While the US ruling doesn’t directly apply in Australia, it strengthens the case for reform. Google may ultimately need to conform its global policies to align with major jurisdictions, and the back-to-back court losses for Apple and Google have emboldened developers, competition lawyers, and regulators alike.
For Australian businesses operating on thin margins, particularly those reliant on microtransactions, subscriptions or custom billing models, the door may finally be opening to a more competitive and sustainable app ecosystem.
