Epic Games and Google settle lawsuit over app store, with Google agreeing to lower standard fees to 20% or 9% depending on transaction type



Epic Games, which rebelled against Google's 15-30% commission on app purchases and in-app purchases through its own app store, introduced its own payment method that bypassed the app store. As a result, Google removed the app for violating its terms of service, and Epic Games sued Google for anti-competitive practices. The lawsuit, which has been ongoing for about five years since 2020, has finally been settled, and it has been announced that Epic Games and Google have agreed to a settlement.

Epic and Google agree to settle their lawsuit and change Android's fate globally | The Verge
https://www.theverge.com/policy/813991/epic-google-proposed-settlement



Google Agrees to Make Major Play Store Changes to Settle Epic Games Antitrust Lawsuit - MacRumors
https://www.macrumors.com/2025/11/05/google-epic-games-antitrust-settlement/

In August 2020, Epic Games filed a lawsuit alleging that Google Play's fees and payment restrictions were anti-competitive. In December 2023, the court ruled in favor of Epic Games, finding that 'Google has created an anti-competitive market through its app store.' An appeals court ruling in July 2025 also upheld the ruling that 'Google's app store and payment system constitute an illegal monopoly.' As a result, Google was required to lift the payment restrictions and allow the distribution of third-party apps by the end of October 2025.

Google's request to stay Epic Games' lawsuit is rejected, and Google must broadly allow external payments by October 2025 or it will be in violation - GIGAZINE



Epic Games has largely won the lawsuit, including in the appeals court, while Google's appeal was not accepted and the suspension of the order was denied. Google has therefore announced that it has reached a settlement with Epic Games, with modified terms including a more global voluntary improvement plan.

On November 5, 2025, Samir Samat, president of Google Platform & Ecosystem, announced the settlement with Epic Games in a post titled 'Exciting News!' According to the post, proposed changes to Android and Google Play that focus on expanding developer choice and flexibility, lowering fees, and promoting more competition while protecting user safety have been submitted to the court. If approved, the settlement will resolve the lawsuit.



In addition, Google spokesperson Dan Jackson explained to media, 'The proposed settlement will result in a 5% fee reduction. The new proposed model will introduce lower fees for US developers and separate service fees from Google Play Billing usage fees.'

Epic Games CEO Tim Sweeney posted a statement supporting Google's settlement proposal, saying, 'Google has made an excellent proposal, subject to court approval, to open up Android and resolve the dispute. This proposal truly strengthens Android's vision as an open platform by streamlining the installation of competing stores globally, reducing developer service fees on Google Play, and enabling third-party in-app and web payments. This is a comprehensive solution, in contrast to Apple's model of blocking all competing stores and making payment methods the only means of competition.'



The proposed changes in the settlement submitted to the court by Google and Epic Games include:

・Global expansion of app distribution and billing platform structure
It has been suggested that this could be applied not only in the United States but also on a global scale by 2032.

- Major revision of fees
The proposal is to lower the service fee to 20% for in-game purchases that 'add substantial value to gameplay,' such as power-ups and additional characters, and to 9% for other purchases such as skins, decorations, and additional levels that change appearance.

- Promoting the adoption of third-party app stores
Rather than just allowing the installation of apps from third-party platforms, the plan is to create a promotional program to make sideloading safe and easy.

- Prohibition of exclusive contracts and preferential treatment for pre-installation
This clause prohibits the preferential treatment that Google has offered to device manufacturers, telecommunications carriers, app distributors, etc., and will halt and prohibit preferential pre-installation and exclusionary measures against competing apps.

・Liberalization of information transmission and payment methods between developers and users
The settlement also requires developers to provide links within their apps or external links to payment methods other than Google Play Billing. The settlement also suggests that, theoretically, Google could receive a commission if a user clicks on an app developer's website and pays for the app. However, Jackson stated, 'Developers will not pay Google a billing fee if a user chooses to pay through an alternative payment system.'

The settlement is subject to court approval and is scheduled to be heard in federal court in San Francisco, California on November 6, 2025, local time.

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in Software,   Smartphone, Posted by log1e_dh