Google Settles Lawsuit with Epic Games
Earlier this week, Google reached a settlement in the long-standing lawsuit with Epic Games, the developer behind the popular game Fortnite.
Epic Games had filed a lawsuit against Google in 2020, accusing the tech giant of antitrust violations related to its management of the Google Play Store. Google’s policy of taking a 30% cut from all purchases made through the Play Store was at the center of the dispute. Epic Games argued that it could operate a similar store with a lower revenue share of 12%.
In response, Epic Games allowed Fortnite players to make in-game purchases directly through its app, leading to the removal of the game from the Android and iOS app stores for violating their terms of service.
As part of the settlement, Google has proposed several changes to the Play Store to improve user experience. One significant change is that Android developers will now have the option to offer alternative payment methods within their apps or through external links. Google will also introduce a capped service fee of either 9% or 20% on transactions in apps that use alternative payment options distributed through the Play Store.
Sameer Samat, president of the Android Ecosystem at Google, stated that these changes aim to provide developers with more choices and flexibility, reduce fees, and promote healthy competition while maintaining user safety.
Epic Games CEO James Sweeney welcomed the proposed changes, emphasizing that they align with Android’s original vision as an open platform. He believes that the adjustments will simplify the process of installing competing app stores globally, lower service fees for developers on Google Play, and enable third-party in-app and web payments.
Reuters reported that the settlement proposal is pending approval from US District Judge James Donato, who is expected to meet with the case’s lawyers to discuss and make a final decision today.
