Google and Epic Games Reach Agreement on App Store Fees
This new proposal, if accepted by the court, would replace the court’s October 2024 injunction with terms the two companies have negotiated.
Google can only charge a 9 percent fee for items that do not affect gameplay, such as additional levels, events, or Fortnite skins that are considered cosmetic. This 9 percent maximum fee is also applicable to in-app subscriptions, non-game app purchases, or up-front app and game purchases.
In case of a mixed bundle that includes in-game items like weapons and in-game skins, Google can charge the higher 20 percent rate.
Google also confirmed that it would charge a five percent fee for apps that choose to use the Google Play Billing system, which would be in addition to the 9 to 20 percent fee.
Now, Epic Games will be able to create an Epic Games Store on Android, paying minimal fees to Google, which is what the company set out to do when it initially filed lawsuits against Apple and Google back in 2020.
The joint filing said it “would allow the parties to put their disputes aside while making Android a more vibrant and competitive platform for users and developers.”
For Android developers, the outcome dictates rules around how apps are sold, monetised, and delivered outside the traditional Play Store walls. This agreement might just revolutionize the functionality of the application through policy synchronization and evolving modifications.
