Google To Implement App Store Reforms Following Settlement With Epic Games

Google recently announced that it has reached a full court settlement with Epic Games, the company behind the popular video game, ‘Fortnite’. This agreement resolves the long-running antitrust lawsuit Epic Games filed in 2020. The goal of the settlement is to lower fees, increase competition, and give developers and users more choices on the Android platform and the Google Play Store.

The two companies submitted the proposed deal in a joint filing to the U.S. federal court in San Francisco. This settlement aims to resolve Epic Games’ lawsuit, which accused Google of illegally controlling how users get apps and make in-app purchases on Android devices. Google, however, has consistently denied any wrongdoing during the entire court battle.

Court Approval and Previous Rulings

The settlement still needs approval from U.S. District Judge James Donato. Judge Donato oversaw a jury trial in 2023 where Epic Games actually won the case. Following that victory, the judge issued a wide-ranging order that required Google to make significant Play Store changes. Google had argued that the original order went too far and could potentially harm user safety and their competitive standing.

In an effort to challenge the court’s earlier ruling, Google had appealed to a federal court, but the decision was upheld in July. Furthermore, the U.S. Supreme Court recently refused Google’s request to temporarily freeze parts of that order. The new proposal from Google and Epic Games asks Judge Donato to modify his earlier order while keeping many of its key ideas in place.

Key Changes from the Google Epic Games Settlement

The settlement brings several important reforms for Android users and app creators. As part of the settlement, Google will make it easier for users to download and install third-party app stores, provided these platforms meet the company’s updated security and safety standards. Developers will also gain more flexibility by being allowed to inform users about alternative payment methods, both within their apps and through external links. Additionally, Google will introduce a capped service fee on transactions, setting rates at either 9% or 20% for apps listed on the Play Store that use payment systems other than Google’s own.

Sameer Samat, Google’s President of the Android Ecosystem, stated that these proposed changes offer more flexibility for everyone while still protecting user safety. The CEO of Epic Games, Tim Sweeney, called the proposal “awesome.” He added that the agreement “genuinely doubles down on Android’s original vision as an open platform.”

Google is also facing other lawsuits related to its search and advertising practices, but it maintains that it has not violated any laws. This major Google Epic Games settlement, however, marks a significant step toward a more open app market.