Epic Games and Google have agreed to a global settlement in their antitrust lawsuit, leading to changes in the Android app ecosystem. This deal reduces Google Play fees and increases accessibility for competing app stores until 2032.
Settlement Details
- The litigation involved Google's control over Android distribution and payments.
- In 2023, a jury found Google tied the Google Play Store illegally to Google Play Billing.
- Google will now allow third-party app stores to register as installable options in the Play Store.
- Service fees will drop to 20% for the first year of a subscription and 9% for other qualifying transactions.
- The changes are global and effective through 2032, pending judicial approval.
Financial Adjustments
Under the settlement, Google is significantly reducing its fees for developers. The standard service fee will decrease to 20% for the first year of new subscriptions or for developers exceeding $1 million in transactions in the previous year. A further reduction to 9% will apply to other transactions via Google Play Billing worldwide.
Global Implementation
This settlement extends internationally, subject to US judicial approval. It is set to reshape the competitive landscape by allowing more app store options and lowering the cost for developers on Android, thus enhancing user choice and reducing expense barriers.
