Google and Epic Games have settled their antitrust lawsuit after years of battling over app distribution and payment systems. The companies filed a proposal to modify the original order imposed by US District Judge James Donato, which was handed down last year after the court sided with Epic Games.
The new agreement focuses on expanding developer choice, reducing fees, and encouraging competition while keeping users safe. Google will have to make significant changes to its Android ecosystem, including allowing third-party app stores to be installed on devices, reducing service fees for developers, and enabling alternative payment mechanisms.
Epic Games CEO Tim Sweeney praised the proposal, saying it "genuinely doubles down" on Android's original vision as an open platform. The company originally sued Google in 2020, alleging that the tech giant had created a monopoly over app distribution and in-app billing services for Android devices.
The modified order will prohibit Google from paying manufacturers and app developers to exclusively install and distribute on the Play Store, or forcing developers to use its payment system. Instead, the company will have to allow third-party app stores to be installed on Android devices, and it will no longer be able to charge excessive fees for in-app purchases.
The proposal also includes a fee cap of 9% or 20%, depending on the type of transaction, with the commission caps only applying to new app installs. Additionally, users will have access to third-party stores that meet neutral criteria, allowing them to compete against the Play Store and each other globally.
Google's President of Android Ecosystem, Sameer Samat, said that the companies' proposal would resolve the "litigations" if approved by Judge Donato. The agreement marks a significant shift for Google, which has had to make major changes to its app distribution and payment systems in order to comply with the original order.
The Supreme Court's denial of Google's appeal earlier this year means that the company will have to follow most of Donato's orders under the new proposal. With this settlement, both parties can move forward, allowing developers to choose between multiple payment options and competing app stores, while ensuring users remain safe and secure.
The new agreement focuses on expanding developer choice, reducing fees, and encouraging competition while keeping users safe. Google will have to make significant changes to its Android ecosystem, including allowing third-party app stores to be installed on devices, reducing service fees for developers, and enabling alternative payment mechanisms.
Epic Games CEO Tim Sweeney praised the proposal, saying it "genuinely doubles down" on Android's original vision as an open platform. The company originally sued Google in 2020, alleging that the tech giant had created a monopoly over app distribution and in-app billing services for Android devices.
The modified order will prohibit Google from paying manufacturers and app developers to exclusively install and distribute on the Play Store, or forcing developers to use its payment system. Instead, the company will have to allow third-party app stores to be installed on Android devices, and it will no longer be able to charge excessive fees for in-app purchases.
The proposal also includes a fee cap of 9% or 20%, depending on the type of transaction, with the commission caps only applying to new app installs. Additionally, users will have access to third-party stores that meet neutral criteria, allowing them to compete against the Play Store and each other globally.
Google's President of Android Ecosystem, Sameer Samat, said that the companies' proposal would resolve the "litigations" if approved by Judge Donato. The agreement marks a significant shift for Google, which has had to make major changes to its app distribution and payment systems in order to comply with the original order.
The Supreme Court's denial of Google's appeal earlier this year means that the company will have to follow most of Donato's orders under the new proposal. With this settlement, both parties can move forward, allowing developers to choose between multiple payment options and competing app stores, while ensuring users remain safe and secure.