Epic and Google have reached a settlement after five years of dispute regarding the distribution and monetization of Play Store app revenue.
Google has faced significant scrutiny in the U.S. and abroad over its app store practices. Regulators have long questioned how much control the company exerts over Android, and the case with Epic is a step in addressing those concerns.
Epic and Google’s five-year antitrust battle finally ends
Google and Epic Games Inc., the maker of Fortnite, have reached a settlement in a legal battle that’s lasted for five years so far. The dispute is over app revenue distribution and payment rules on Android devices. Epic accused Google of using its power to restrict how apps are distributed and monetized on Android.
The financial agreements in the settlement weren’t disclosed, but it was filed in a San Francisco federal court following a series of major court-ordered changes to Google’s Play Store.
After the verdict, U.S. District Judge James Donato ordered Google to open up Android to outside app stores and alternative payment methods. Google was also banned from giving special treatment to its own services on Android phones.
Developers were given the right to direct users toward payment options that are cheaper for them outside the Play Store. This move is expected to reduce Google’s commission fees.
The settlement will largely maintain the court’s requirements with some modifications. Both companies told the court they plan to adjust the earlier order as part of their agreement.
New rules for Google Play and app developers
Under the terms of the proposed deal, Google will still have to allow developers to offer alternative payment options, but with defined commission caps. Purchases made outside of the Play Store will now carry commissions of either 9% or 20%, depending on the type of transaction.
Judge Donato’s earlier order required Google to share its full Play Store catalog with competitors. The new settlement replaces that rule with a system of “registered app stores” that will receive the same treatment as the Google Play Store on Android devices, ensuring fairer competition without forcing Google to share its entire app database.
“The parties have agreed to resolve their disputes with a settlement that both parties believe will advance the evolution of the Android platform,” the companies said in a joint filing.
The deal will also end related litigation involving Samsung Electronics Co.
Sameer Samat, Google’s head of Android, said the new rules are designed to give developers more of a choice and allow for flexibility. Other benefits include lower fees, more room for competition, and the safety of users. Epic Games’ CEO Tim Sweeney also praised the deal.
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