Google and Epic Games Reach Antitrust Settlement in Fortnite Case
Tim Sweeney, the CEO of Epic Games, praised Google’s antitrust settlement in the Fortnite case as a “comprehensive solution” that reinforces Android’s vision as an open platform. The agreement includes reforms to the Android Store, such as lower commissions and increased competition on the platform.
As part of the new proposal, Google will allow Android app developers to inform users about alternative payment methods within apps and through external web links. The commission that Google can charge developers will be limited to either 9% or 20%, depending on the type of transaction.
In response to the settlement, Samir Samat, President of the Android Ecosystem at Google, highlighted the focus on expanding developers’ choice and flexibility, reducing fees, and promoting competition while prioritizing user safety.
Sweeney contrasted Google’s approach with Apple’s, noting that Apple restricts third-party stores and emphasizes in-app payments as the primary competitive factor. Apple recently reported a record profit for its services business, including the App Store, with profits increasing by approximately 15% to .75 billion.
Epic Games had also filed a lawsuit against Google and Apple for alleged anti-competitive behavior related to app store ecosystems and control over in-app payments. While Apple largely prevailed in earlier court cases, it was required to adjust App Store rules to allow alternative payment options. Google’s appeal was denied in July, affirming the need for competition restrictions and changes.
Following the settlement, Sweeney announced that the Epic Games Store for Android will be available on the Google Play Store, potentially enhancing competition and revenue opportunities for developers. This agreement is anticipated to reshape the mobile market and gaming ecosystem by offering more payment options and broader in-app purchase opportunities.
