Google and Epic Games Reach Comprehensive Settlement in Five-Year-Long Battle Over Android App Store
A long-standing dispute between Google and video game maker Epic Games appears to be coming to an end, as the two tech giants have reached a comprehensive settlement that could potentially bring an end to a five-year legal fight over Google's Play Store for Android apps. According to a joint filing made by both parties in a San Francisco federal court on Tuesday, the agreement allows them to put their disputes aside while making Android a more vibrant and competitive platform for users and developers.
Epic Games had filed lawsuits against Google's Play Store in 2020 as part of its efforts to bypass exclusive payment processing systems that charged high commissions on in-app transactions. The company, which is also behind the hit online game Fortnite, won a significant victory over the summer when a federal appeals court upheld a jury verdict condemning Google's Android app store as an illegal monopoly.
As part of their joint filing, Epic Games and Google revealed that the settlement agreement includes provisions that will require the tech giant to limit its payment processing fees for in-app transactions to between 9% and 20%, depending on the transaction. This is significantly lower than the previous rates of 15% to 30% charged by Google's app store.
The specific terms of the agreement remain under seal, pending approval from U.S. District Judge James Donato. However, Epic Games' CEO Tim Sweeney has welcomed the proposed settlement, describing it as an "awesome proposal" in a social media post.
With this development, Google is now poised to implement significant changes to its Android app store, including the requirement to distribute rival third-party app stores so that consumers can download them on their phones if they choose to do so. This move could potentially lead to increased competition and more choices for users, which would be a major departure from the current digital landscape.
As both Google and Epic Games navigate this new agreement, it remains to be seen how these changes will play out in practice. However, with the tech giant's market dominance at stake, this settlement marks an important turning point in the ongoing battle over control of the digital marketplace.
A long-standing dispute between Google and video game maker Epic Games appears to be coming to an end, as the two tech giants have reached a comprehensive settlement that could potentially bring an end to a five-year legal fight over Google's Play Store for Android apps. According to a joint filing made by both parties in a San Francisco federal court on Tuesday, the agreement allows them to put their disputes aside while making Android a more vibrant and competitive platform for users and developers.
Epic Games had filed lawsuits against Google's Play Store in 2020 as part of its efforts to bypass exclusive payment processing systems that charged high commissions on in-app transactions. The company, which is also behind the hit online game Fortnite, won a significant victory over the summer when a federal appeals court upheld a jury verdict condemning Google's Android app store as an illegal monopoly.
As part of their joint filing, Epic Games and Google revealed that the settlement agreement includes provisions that will require the tech giant to limit its payment processing fees for in-app transactions to between 9% and 20%, depending on the transaction. This is significantly lower than the previous rates of 15% to 30% charged by Google's app store.
The specific terms of the agreement remain under seal, pending approval from U.S. District Judge James Donato. However, Epic Games' CEO Tim Sweeney has welcomed the proposed settlement, describing it as an "awesome proposal" in a social media post.
With this development, Google is now poised to implement significant changes to its Android app store, including the requirement to distribute rival third-party app stores so that consumers can download them on their phones if they choose to do so. This move could potentially lead to increased competition and more choices for users, which would be a major departure from the current digital landscape.
As both Google and Epic Games navigate this new agreement, it remains to be seen how these changes will play out in practice. However, with the tech giant's market dominance at stake, this settlement marks an important turning point in the ongoing battle over control of the digital marketplace.