Epic Games and Google Settle Legal Dispute Over Play Store

Video game developer Epic Games has reached a comprehensive settlement with Google, potentially concluding a five-year legal battle focused on Google’s Play Store for Android applications. The two companies announced their agreement in a joint legal document submitted to a federal court in San Francisco on a recent Tuesday.

The settlement allows both parties to set aside their disputes while working to enhance the Android platform for users and developers. This development follows a significant victory for Epic earlier this year, when a federal appeals court upheld a jury verdict that deemed Google’s Android app store an illegal monopoly. The unanimous ruling opened the door for changes aimed at providing consumers with more choices in app distribution.

While the specific terms of the settlement remain confidential and require approval from U.S. District Judge James Donato, the companies shared some details in their filing. The agreement aligns closely with Donato’s ruling in October 2024, which instructed Google to dismantle barriers that prevented competition in its app store. One key provision mandates that Google distribute third-party app stores, allowing users to download alternative options on their devices.

Google had sought to challenge these changes through an appeal, but the decision from the Ninth Circuit Court of Appeals in July hindered the company’s efforts. This ruling represents a substantial setback for Google as it faces three separate antitrust trials that target various aspects of its vast internet operations.

Epic Games initially filed lawsuits against both Google and Apple in 2020, aiming to bypass exclusive payment processing systems that charged up to 30% commissions on in-app transactions. The recently proposed settlement stipulates that Google will reduce these fees to a range of 9% to 20%, depending on the nature of the transaction.

Epic’s CEO Tim Sweeney expressed enthusiasm for the settlement, calling it an “awesome proposal” in a social media post. A hearing to discuss the settlement is scheduled for Thursday, marking a significant step in the ongoing evolution of app distribution and competition in the digital marketplace.