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 could signal meaningful changes for the Android app ecosystem. If approved by the court, it may ease some of the current restrictions around app distribution and monetization on the platform.
The agreement would allow Android users greater flexibility to install third-party app stores, use alternative payment systems, and even purchase apps or in-game content directly from developers’ own web shops. Web shops provide developers with a direct relationship with their players, enabling them to sell content, manage pricing, and offer promotions without intermediaries. This means more control over their business models and a larger share of the revenue generated from their work.
For smaller studios, in particular, web shops can help build sustainable communities and brands independent of major storefronts. Combined with access to third-party app stores and alternative billing options, this settlement could diversify how developers distribute and monetize their products across the Android platform.
Ultimately, the settlement has the potential to make the Android ecosystem more open and flexible. It represents a step toward greater choice for players, more options for developers, and a healthier level of competition within mobile gaming."
