Google settles antitrust lawsuit with Epic Games; suggests app store reforms

Google has reached a deal with video game creator and publisher Epic Games, agreeing to reforms of Android and the Play Store that are designed to lower fees, increase competition and expand choice for developers and consumers.

In a joint filing in federal court in San Francisco, the two companies asked U.S. District Judge James Donato to consider a proposal to resolve a 2020 lawsuit in which Epic Games accused Google of illegally monopolizing how users access and make in-app purchases. Google denies any wrongdoing.

How Reuters noted that it would require the approval of Donato, who oversaw a 2023 jury trial that Epic Games won and issued an injunction ordering reforms to the Play Store that Google argued went too far. Google attempted to challenge the injunction in a federal appeals court. but in July the court upheld the decision. Last month, the US Supreme Court also rejected Google's request to temporarily freeze part of the injunction.

The new offering will make it easier for users to download and install third-party app stores that comply with new security standards.

Developers will now be allowed to direct users to alternative payment methods through apps or through a third-party web link. Google said it will introduce a limited service fee (either nine or 20 percent) for transactions of apps distributed through the Play Store. These fees will apply to apps installed or updated on the Play Store after October 30th.

If approved, the deal would also resolve a separate lawsuit filed by Epic Games this year against Google and Samsung over app downloads. Epic Games reached an agreement with Samsung back in July.

Google has been involved in several major lawsuits in recent years, including one in which the tech giant settled with 36 US states regarding alleged control over the Android app ecosystem.

Source: Reuters