Google Urges 9th Circuit To Halt 'Dangerous' Epic Ruling, Cites Substantial New Security Risks

Benzinga · 10/17 09:19

Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) subsidiary Google has requested the 9th Circuit Court of Appeals to put a stop to the impending changes mandated by Judge James Donato’s ruling in the Epic v. Google case.

What Happened: Google has made an emergency appeal to the 9th Circuit Court of Appeals to prevent the enforcement of Judge Donato’s recent ruling in the Epic v. Google case, reported The Verge.

The ruling, which Google has already appealed, would require Google to allow third-party app stores within Google Play and eliminate the necessity of Google Play Billing for apps distributed via Google Play.

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"Linking out from within an app on Google Play to external app downloads is dangerous," the fact sheet stated.

Google has argued that the ruling “threatens Google Play's ability to provide a safe and trusted user experience,” echoing its previous arguments that were dismissed by Judge Donato during the district court case.

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Why It Matters: Lee-Anne Mulholland, Google's VP of regulatory affairs, expressed concerns about the potential negative impact on Android users, developers, and device manufacturers, who have built successful businesses on Android.

Google’s filing with the court begins with a statement that the court’s order, at the request of a single competitor, Epic Games, would expose over 100 million U.S. Android users to significant new security risks and necessitate fundamental changes to Google’s contractual and business relationships with hundreds of thousands of Google partners, according to the report.

This move by Google comes amid increasing scrutiny of its market power. Former President Donald Trump recently expressed concerns about Google’s market power and alleged bias in content surfacing during an interview. Trump, however, stopped short of endorsing calls to break up the tech giant. This indicates that Google’s actions are being closely watched by regulators and industry observers alike.

Last week, Google announced it is appealing the court ruling that mandates it to open its Play Store to third-party marketplaces. The company is also seeking a court order to halt demands from Fortnite-maker Epic Games, which require Google to allow competing app stores and alter its payment system.

This strategy aligns with Apple Inc.‘s approach in its legal battle with Epic last year, where Apple argued that the decision conflicted with another court’s dismissal of similar claims against it.

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Price Action: Alphabet’s Class A shares closed at $165.16 on Wednesday, down 0.18% for the day. In after-hours trading, the stock dropped by an additional 0.25%. Year to date, Alphabet Class A shares have risen by 19.53%.

Meanwhile, Alphabet Inc. Class C shares ended the day at $166.74, slipping 0.096%. In after-hours trading, the stock edged down 0.084%. Year to date, Alphabet Class C shares have gained 19.48%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote