The lawsuit between Google and Epic Games has been settled in favor of Epic Games.
The long-standing lawsuit between Google and Epic Games has been settled, with far-reaching consequences for Android and the Play Store. The five-year battle revolved around the 15 to 30 percent commissions on app transactions, which, according to Epic, strengthened Google’s monopoly. While the case against Apple only resulted in a minor change, Epic clearly wins here.
Easier for Third Parties
Under the settlement, Google must make it easier to install alternative app stores in the US, as long as they meet new safety criteria. The previous ban on exclusive deals that hindered competition remains prohibited. Developers are also allowed to directly refer users to their own payment options, both in-app and via external links.
Google is introducing a service fee for apps that use alternative payments: nine or 20 percent, depending on the implementation. These lower rates apply to apps installed or updated via Google Play from October 30. This makes the revenue model for developers more transparent and cheaper.
Mixed Feelings about Apple, Clear Win with Google
Epic CEO Tim Sweeney calls the deal “an all-encompassing solution” and praises the fact that Android is returning to its original, open philosophy. According to Android executive Sameer Samat, users can expect more choice, lower costs and more competition.
The settlement still needs to be approved by the judge hearing the case. If that happens, the adjustments will follow later this year, and they could potentially have major consequences for the Android app ecosystem.