Google and Epic Settle App Store Dispute with Reforms

Proposed changes aim to reshape Android app distribution

Google and Epic Games have reached a proposed settlement in a long-running antitrust case that could significantly alter how apps are distributed and monetized on Android devices. The agreement, filed in a San Francisco federal court, seeks to resolve Epic’s 2020 lawsuit accusing Google of monopolistic practices in app access and in-app payments. If approved by U.S. District Judge James Donato, the deal would introduce new rules for third-party app stores and alternative payment systems. Google has consistently denied any wrongdoing throughout the litigation.

Key Terms of the Settlement

Under the proposed framework, Google would allow users to more easily install third-party app stores that meet updated safety and security standards. Developers would also gain the ability to guide users toward alternative payment options, both within apps and through external links. To accommodate these changes, Google plans to implement capped service fees of either 9% or 20% for Play-distributed apps using non-Google payment methods. These fee caps apply to apps installed or updated via Google Play after October 30.

Sameer Samat, president of Google’s Android Ecosystem, stated that the reforms maintain user safety while offering greater flexibility to developers and consumers. Epic Games CEO Tim Sweeney welcomed the proposal, describing it as a reaffirmation of Android’s open platform philosophy. The companies have asked Judge Donato to modify his earlier injunction, which mandated sweeping changes to the Play Store following Epic’s legal victory in 2023. A three-member technical committee would remain in place to oversee disputes related to the injunction’s implementation.

Legal Background and Broader Impact

Google previously challenged Donato’s injunction in federal appeals court, but the ruling was upheld in July. The U.S. Supreme Court declined to intervene last month, leaving the original order intact. Tuesday’s filing represents a joint effort to revise the injunction while preserving many of its core provisions. If accepted, the settlement would also resolve a separate lawsuit Epic filed against Google and Samsung over app distribution, which Epic settled with Samsung earlier this year.

Beyond this case, Google continues to face legal challenges related to its search and advertising practices. Government agencies, consumer groups, and commercial plaintiffs have filed suits alleging violations of state and federal laws. The company maintains that its business operations comply with legal standards. The outcome of the Epic settlement may influence how future cases are approached, particularly those involving platform control and developer access.

Implications for Developers and Users

The proposed reforms could lead to a more competitive environment for Android app distribution. Developers may benefit from reduced fees and increased autonomy in managing transactions. Users, in turn, could gain access to a wider range of app sources and payment options. These changes reflect broader industry trends toward decentralization and user choice.