Google's app store dominance suffers a blow as court rejects stay petition
In a landmark decision, the United States District Court for the Northern District of California has rejected Google's motions to delay the implementation of a permanent injunction in the Epic Games antitrust case. The decision, handed down on September 12, 2025, follows a series of legal battles between the tech giant and the video game developer, Epic Games.
The permanent injunction stems from Epic Games' successful antitrust lawsuit against Google, which targets Google's digital advertising technology monopolization, in addition to search monopolization. The injunction targets multiple aspects of Google's app store and billing monopoly.
The court rejected Google's claims of irreparable harm from compliance requirements, emphasizing the importance of preserving courts' remedial powers to address monopolistic conduct in digital markets. The Department of Justice, which filed an amicus brief on January 7, 2025, supporting Epic Games' legal arguments, also underscored this point.
Under the permanent injunction, Google must eliminate restrictions on alternative in-app payment methods within 30 days of the mandate issuance. This means app developers can now communicate directly with users about alternative payment options and pricing outside Google Play Store.
Moreover, revenue-share terms cannot be designed to punish developers who use alternative payment systems under the injunction's restrictions. Google also faces immediate restrictions on conditioning payments, revenue sharing, or access to Google services based on app developer agreements requiring first or exclusive launches on Google Play Store.
Revenue sharing agreements between Google and Android ecosystem participants face substantial restrictions under the permanent injunction. Google must provide third-party Android app stores access to Google Play Store's catalog of apps within 10 months following the mandate issuance.
The geographic scope of the permanent injunction applies to the United States of America. Google retains the right to request injunction modifications 'for good cause' under court supervision. Epic Games similarly maintains modification request rights, except for the 10-month compliance deadline for catalog access and app store distribution provisions.
The Ninth Circuit's September 12, 2025, order acknowledged the extended timeline between the December 2023 jury verdict and potential implementation. This extension was due to the complexities involved in disentangling Google's integrated services, including its app store and digital advertising technology.
Google filed a notice of appeal on October 10, 2024, challenging the permanent injunction. However, for now, the court's decision stands, marking a significant milestone in the fight against tech monopolies. The permanent injunction also requires Google to end exclusivity deals with phone manufacturers, carriers, and large developers that discourage competing app stores or billing systems, potentially opening up the Android ecosystem to more competition.
