Google and Epic Games have agreed to a deal that will potentially end their long-running dispute and pave the way for third-party app stores to become available on Android worldwide.
In October 2024 Judge James Donato ruled that Google had to allow the distribution of third-party app stores through Google Play. Then, last month, Google did changes to allow the use of third-party payment systems after a US court ruling said Google can no longer restrict customers from using Google Play Billing. However, both decisions only apply to the United States.
Now Google and Epic have filed a joint petition It outlines an agreement that will allow third-party app stores on Android worldwide. Additionally, the agreement suggests that instead of the traditional 30% fee, Google will take a cut of “9% or 20%, depending on the type of transaction” for payments made through Play-distributed apps that use alternative payment options.
It is currently unclear from the proposal how Google would decide what rate to apply to transactions.
The proposal still needs to be approved by a US court. The next hearing will take place tomorrow (November 6), and if accepted by the court, the deal will last until 2032 and apply worldwide.
IN publish on XEpic CEO Tim Sweeney called the deal a breakthrough. “Google has made a stunning offer, subject to court approval, to open the Android case in Epic v Google in the US and settle our disputes. It truly echoes the original vision of Android as an open platform to streamline installations of competing stores around the world, reduce service fees for developers on Google Play, and enable third-party payments in apps and online.
“This is a comprehensive solution that contrasts with Apple's model of locking out all competing stores and leaving payments as the only avenue of competition.”
Android President Samir Samat was also jubilant. “Exciting news!” – he said in publish on X. “Together with Epic Games, we have submitted a proposed set of changes to Android and Google Play that are aimed at increasing developer choice and flexibility, reducing fees and encouraging more competition, while protecting user safety. If approved, this will resolve our legal proceedings. We look forward to further discussions with the judge on Thursday.”
Several companies have already launched or are preparing to launch alternative app stores and third-party payment systems, and the new agreement is likely to accelerate those efforts. Just last month Epic Games introduced the Epic Web Shops service for PC and mobile devices.
“This marks an important moment for the Android ecosystem”
Chris Huish, Xolla
Chris Huish, president of video game payment service provider Xsolla, welcomed the proposed deal between Epic and Google. “This marks an important moment for the Android ecosystem,” he said in a statement provided by GamesIndustry.biz. “By supporting alternative app stores and payment systems, Google opens the door to more choice for both developers and users.
“Game developers in particular will benefit as microtransactions, subscriptions and cross-platform offerings can now operate with greater flexibility. This can help smaller studios compete and innovate more easily, while providing users with more competitive prices and a variety of options.
“At the same time, this openness requires new considerations such as maintaining security, providing reliable updates and ensuring overall store quality to ensure a safe and consistent experience for everyone. Overall, this is a positive step towards a more open, balanced and innovative mobile gaming environment.”
Gil Tov-Lee, chief marketing officer at payment provider Appcharge, also welcomed the new offering. “The Google-Epic deal is the moment we've been waiting for,” he said in a statement sent to GamesIndustry.biz. “Thirty percent never made economic sense to publishers, and now stores have to make a living. Kudos to Epic, the DTC team, and the brave studios for pushing this idea forward. The result is real choice for players and publishers, with online retailers playing a leading role in managing relationships and fixing the economics of the division.”
