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The unsuccessful appeal represents a major victory for video game maker Epic Games, which launched a legal crusade targeting Google’s Play Store for Android apps and Apple’s iPhone app store nearly five years ago in an attempt to bypass exclusive payment processing systems that charged 15% to 30% commissions on in-app transactions.

The jury's of Google's app store for Android-powered smartphones began a cascade of setbacks that includes monopoly judgements against the company's and the earlier this year.

Although not as lucrative as Google's search engine or ad system, the Play Store for Android apps has long been a gold mine that generated billions of dollars in annual revenue by taking a 15% to 30% cut from in-app transactions funneled through the company's own payment processing system.

Following a month-long trial, a nine-person jury determined that Google had rigged its system to thwart alternative app stores from offering better deals to consumers and software developers. That verdict resulted in Google to tear down digital walls shielding the Play Store from competition, triggering the company's appeal to overturn the jury's finding and void the judge's mandated shakeup.

But a three-judge panel in February rejected its lawyers' contention that Donato erred by allowing the case to be determined by a jury that deviated from the market definition outlined by in Epic's case against the iPhone maker's app store.

Epic's lawsuit "was replete with evidence that Google’s anticompetitive conduct entrenched its dominance, causing the Play Store to benefit from network effects," the judges wrote in the decision.

The ruling “will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem,� Google’s vice president of regulatory affairs Lee-Anne Mulholland said in a statement.

Unless Google can extend the enforcement delay placed on Donato's order issued last October, the company will have to begin an overhaul that includes making the Play Store's entire library of more than 2 million Android apps available to would-be rivals and also help distribute the alternative options. Google has argued that the required revisions will raise privacy and security risks by exposing consumers to scam artists and hackers masquerading as legitimate app stores.

But Epic's lawyers have ridiculed Google's warnings about the changes as scare tactics in a desperate attempt to protect the fortunes of its corporate parent Alphabet Inc.

Although Epic fell short in its attempt to have the iPhone's app store declared a monopoly, that case resulted in that required Apple to surrender exclusive control over the payment processing of in-app transactions and allow links to alternative systems without collecting a commission.

Besides being hit with Donato's order, Google still faces further trouble ahead that could leave an even bigger dent in its finances.

As part of the effort to address Google’s illegal monopoly in search, by the U.S. Justice Department that would require the sale of its Chrome web browser and ban the multibillion dollar deals that company has been making with Apple and others to lock-in its search engine as the main gateway to the internet.

Google is also facing as part of the countermeasures to its monopoly in that business. A trial on that proposal is scheduled to begin in September.