After years of legal battles, Google and Epic Games have reached a settlement, which is still awaiting approval from the US court. The agreement includes simpler installation of third-party stores, lower service fees, and alternative payment options.
The five-year legal battle between Google and Epic Games, who accused Google of monopolising app access and payments on Android devices, could soon come to an end. Both companies have agreed to a settlement and are now waiting to see how U.S. District Judge James Donato responds. If the court approves the deal, most of its terms will remain valid and enforceable globally until 2032.
The conclusion states:
"The parties' Settlement will provide significant benefits to Android users and developers - with many key provisions lasting until 2032 - and will promote competition on the Android platform while retaining many of the core provisions of the Existing Injunction. The Settlement and Proposed Modified Injunction will (i) provide a longer remedies period than the Existing Injunction; (ii) promote Android app store competition across Android by introducing a greatly simplified flow for the installation from the web of Registered App Stores (and of apps from those stores) that would apply around the world; (iii) allow developers to offer alternative payment options, including through links to payment websites; and (iv) provide developers with the immediate benefit of a reduction to Google’s service fees"
Under the new proposal, Google will simplify the installation of third-party app stores on Android devices worldwide that meet 'new security standards' via a 'Registered App Store' programme. In the U.S., developers will also be permitted to direct users to alternative payment methods within apps and via external web links. Reuters: "Google said it would implement a capped service fee of either 9% or 20% on transactions in Play-distributed apps that use alternative payment options. Those caps apply to apps first installed or updated from Google Play after October 30." Google may still charge an additional fee for transactions made via Play Billing.
Sameer Samat, Google's president of Android Ecosystem, on X: "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 litigations. We look forward to discussing further with the Judge on Thursday."
Tim Sweeney, Epic Games CEO, on X: "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. The public filings are live."
In a statement to GamesMarkt, Chris Hewish, President at Xsolla, explained: "The proposed settlement between Epic Games and Google appears, on the surface, to expand flexibility for developers, but the details tell a different story. By introducing new 9% and 20% service fees on purchases made through external web links within 24 hours of linking out, the agreement effectively re-taxes what should be true direct-to-consumer transactions. This limits the freedom developers have fought for and complicates how they monetize across platforms.
The only real winners under this framework are the largest publishers, who have the resources to operate their own 'Registered Alternative App Stores.' At the same time, independent developers face more rules and uncertainty. Rather than creating an open ecosystem, this settlement reinforces platform control at the expense of developer independence.
Xsolla will continue advocating for fair, transparent systems and providing the tools developers need to sustain their businesses directly with players."
