Epic and Google agree to settle their lawsuit and change Android’s fate globallyInstead of breaking Google’s app store, Google will let them in.
Epic Games and Google Settle Lawsuit, Paving the Way for Major Android App Store Changes Globally
San Francisco, CA – In a significant turn for the mobile app ecosystem, Epic Games and Google have reached a comprehensive settlement to resolve Epic’s high-profile antitrust lawsuit targeting Google’s Play Store practices. The agreement proposes sweeping changes to Android and the Google Play Store that, if approved by the court, will fundamentally alter how apps are distributed and monetized worldwide.
Key Concessions by Google
The proposed settlement addresses the core issues raised in Epic’s 2020 lawsuit, which accused Google of illegally monopolizing app distribution and in-app billing on Android.
Reduced Service Fees: Google has agreed to slash its service fees significantly. Developers will now face a maximum commission of 20% for in-app purchases that provide a significant gameplay advantage, and a lower rate of 9% for purchases without such an advantage (like cosmetic items or subscriptions).
Alternative Payment Options: Developers will be allowed to direct users to alternative payment methods both inside apps and via external web links, bypassing Google Play Billing. If a user chooses an alternative payment method, Google may charge a minimal service fee (potentially an additional 5% if Google Play Billing is used for the transaction, though details are complex).
Opening Up to Rival App Stores: Perhaps the most impactful change is the introduction of a program for “Registered App Stores.” Under this new system, alternative app stores that meet specified security and safety standards will be easier for users to download and install directly onto their Android devices, effectively dismantling the friction and “scare screens” that previously discouraged users from sideloading.
Global Reach: Crucially, these significant changes are proposed to be implemented globally and remain in effect through June 2032, extending far beyond the initial US-centric focus of the court injunction.
Reaction from Epic Games
Epic Games CEO Tim Sweeney publicly praised the agreement, calling the proposal “awesome” and stating that it “genuinely doubles down on Android’s original vision as an open platform.” This positive reception marks a stark contrast to Epic’s ongoing legal battles with Apple.
Next Steps
The agreement is not yet final. The proposed settlement has been filed with U.S. District Judge James Donato, who presided over the original jury trial that found Google liable in late 2023. The companies are scheduled to meet with Judge Donato to discuss the proposal, and his final approval is required for the changes to take effect.
