Epic Games and Google have officially settled their 5-year legal battle over Android app store practices, signaling a new era for app developers and digital marketplaces. The video game maker has reached a “comprehensive settlement” with Google, according to the latest updates.
Both parties confirmed the settlement agreement in a joint legal filing in a San Francisco federal court.
Epic, which makes the online game Fortnite, won the case when a federal appeals court upheld a jury verdict condemning Google’s Android app store as an illegal monopoly. The unanimous ruling allows a federal judge to move forward with changes aimed at giving consumers more options.
The US Supreme Court refused to protect Google from a judge’s order requiring an app store makeover last month.
The specific terms of the settlement agreement remain secret and must be approved by US District Judge James Donato. However, the two companies broadly outlined some of their agreements in their joint filing.
Sameer Samat, President of the Android ecosystem at Google, said: “Exciting news! Together with Epic Games, we have filed a proposed set of changes to Android and Google Play that focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition, all while keeping users safe. If approved, this would resolve our litigation.”
He also noted that it will “focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition, all while keeping users safe.”
Tim Sweeney, Founder and CEO of Epic Games, added his perspective: “Google has made an awesome proposal, subject to court approval, to open up Android in the US Epic v Google case and settle our disputes. It genuinely doubles down on Android’s original vision as an open platform to streamline competing store installs globally, reduce service fees for developers on Google Play, and enable third-party in-app and web payments.”
“This is a comprehensive solution, which stands in contrast to Apple’s model of blocking all competing stores and leaving payments as the only vector for competition,” Sweeney added.
Epic Games filed lawsuits targeting Google’s Play Store and Apple’s iPhone app store in 2020 in an attempt to bypass exclusive payment processing systems that charged 15% to 30% commissions on in-app transactions.
In October 2024, Donato ordered Google to tear down the digital walls shielding its Android app store from competition.
The tech giant had previously complained that Donato’s forcing of more app store competition posed security concerns.
Google had hoped to void those changes with an appeal, but the ruling issued in July by the Ninth Circuit Court of Appeals delivered a legal blow to the tech giant. The three separate antitrust trials led Google to reconsider the decision to negotiate.
Also Read: 8 Android Games Exclusive to Epic Games Store, Not Google Play
This new proposal, if accepted by the court, would replace the court’s October 2024 injunction with terms the two companies have negotiated.
Google can only charge a 9 percent fee for items that do not affect gameplay, such as additional levels, events, or Fortnite skins that are considered cosmetic. This 9 percent maximum fee is also applicable to in-app subscriptions, non-game app purchases, or up-front app and game purchases.
In case of a mixed bundle that includes in-game items like weapons and in-game skins, Google can charge the higher 20 percent rate.
Google also confirmed that it would charge a five percent fee for apps that choose to use the Google Play Billing system, which would be in addition to the 9 to 20 percent fee.
Now, Epic Games will be able to create an Epic Games Store on Android, paying minimal fees to Google, which is what the company set out to do when it initially filed lawsuits against Apple and Google back in 2020.
The joint filing said it “would allow the parties to put their disputes aside while making Android a more vibrant and competitive platform for users and developers.”
For Android developers, the outcome dictates rules around how apps are sold, monetised, and delivered outside the traditional Play Store walls. This agreement might just revolutionize the functionality of the application through policy synchronization and evolving modifications.