Google and Epic Games are proposing a settlement that could end their years-long legal battle over the Play Store. The deal would reduce fees and give developers more flexibility in app distribution and payments.
Years of argument before resolution
Google and Fortnite developer Epic Games have submitted a comprehensive settlement proposal to a US court that could end the years-long antitrust dispute over the Play Store. The proposed agreement includes far-reaching reforms that will reduce fees and give developers more freedom of choice in app distribution. In a joint motion, the companies asked the judge responsible to review the proposal to resolve Epic’s 2020 antitrust lawsuit.
The process began when Epic implemented its own payment system in Fortnite in 2020 to bypass Google’s platform fees. Google then removed the popular battle royale game from the Play Store, prompting Epic to sue for antitrust violations. Google has denied any wrongdoing throughout the closely pursued legal battle and argued that Android users can install apps from other sources. A jury found in Epic’s favor in November and December 2023, ruling that Google violated antitrust laws by maintaining the Play Store as the dominant storefront on Android. As Reuters Reportedly, Judge James Donato last year issued a sweeping injunction ordering Play Store reforms that Google called too broad. The company appealed the ruling.
Key points of the planned agreement
The settlement proposal would allow developers to direct users to alternative payment methods both within apps and via external web links. Google announced that it will implement a capped service fee (in the US) of either nine or 20 percent for transactions in Play-branded apps that use alternative payment options. This represents a significant reduction compared to current standard rates, which can be as high as 30 percent.
The agreement is also intended to simplify the installation of third-party app stores. In the future, users would be able to download and install alternative app stores from websites with a single click, provided they meet new security and data protection standards. The “Registered App Stores” program would run until 2032, extending beyond the three-year period originally ordered by Judge Donato. Additionally, Google plans to offer developers more transparency in app rating and distribution.
The company would also ease restrictions on promoting alternative app stores, which has previously been heavily restricted. Epic Games CEO Tim Sweeney called Google’s proposal “great” and said it “truly doubles down on Android’s original vision as an open platform.” Sweeney also used the opportunity to take a swipe at Apple, whose closed ecosystem he presented as a contrast to Google’s openness. Epic is conducting a similar legal dispute against Apple at the same time, but it has so far been less successful. The proposal requires Donato’s approval. A hearing is scheduled for Thursday where Google and Epic will meet with the judge. The global reach of the proposed changes could also benefit developers outside the US and increase competition in the app ecosystem worldwide.
