Epic and Google Reach Landmark Settlement in Five-Year Antitrust Battle
Epic Games and Google have finally reached a settlement after more than five years of legal wrangling over the distribution and monetization of Play Store app revenue. The dispute, which began when Epic accused Google of abusing its market power, has prompted intense scrutiny from regulators both in the U.S. and abroad.
Background of the Dispute
Epic Games—best known for its hit title Fortnite—filed suit against Google in 2020, alleging that the company’s Play Store policies limited how apps could be distributed and monetized on Android devices. Specifically, Epic took issue with:
• Google’s requirement that all in-app payments use Google’s billing system, which carries a standard commission of 30 percent
• Restrictions preventing developers from directing users to cheaper payment options outside the Play Store
• Preferential treatment given to Google’s own apps and services
In August 2023, U.S. District Judge James Donato issued a ruling that forced Google to open Android to third-party app stores, allow alternative payment methods and prohibit self-preferencing of Google’s own services.
Key Terms of the Settlement
Although the exact financial terms remain confidential, the settlement—filed in San Francisco federal court—largely upholds Judge Donato’s requirements while introducing several modifications agreed upon by both parties:
1. Alternative Payment Options
• Developers may offer payment methods outside the Play Store.
• Commission caps are set at 9 percent or 20 percent, depending on the transaction type.
2. Registered App Stores
• Rather than sharing its entire app library with competitors, Google will recognize a system of “registered app stores.”
• These stores will receive the same visibility and treatment as Google Play, promoting fairer competition without requiring full database sharing.
3. End to Related Litigation
• The agreement also resolves parallel suits involving Samsung Electronics Co.
• All parties have filed a joint request to amend the earlier court order to reflect these adjustments.
Industry Reactions
Sameer Samat, Google’s Vice President of Android, said the new rules will give developers greater freedom, more competitive choices, and enhanced user safety. Epic Games CEO Tim Sweeney praised the settlement as a significant step forward for the evolution of the Android ecosystem.
What’s Next?
The companies have asked Judge Donato to approve the revised order, which is expected to take effect once the court signs off. If approved, Android developers should soon have more options for distributing apps and setting payment terms—potentially lowering fees and spurring innovation across the platform.
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