Google and Epic Games, Inc. agreed to end a five-year dispute over Android app fees. Under the deal, Google will open the Play Store to outside options and sharply lower in-app payment commission rates.
According to the Associated Press, the two companies on the 3rd (local time) filed a joint document with the federal court in San Francisco and said they had reached a comprehensive settlement. The agreement is known to largely follow the ruling the court issued last year.
At the time, Judge James Donato ordered Google to open the Android app marketplace "Play Store" to competition and allow users to use external payment methods.
Under the agreement, in-app payment commission rates will drop from 15%–30% to 9%–20%. However, the deal must receive final approval from Judge Donato to take effect.
In a joint statement, the two companies said the agreement will end a long-running dispute and make Android a more open and competitive platform for both users and developers.
Tim Sweeney, Epic Games, Inc. Chief Executive Officer (CEO), said on X (formerly Twitter) that the decision reinforces the original vision of Android as an open platform and noted that it contrasts with Apple, which blocks competing app marketplaces and controls only payments.
Epic Games, Inc. filed an antitrust lawsuit in 2020, saying Google's in-app payment fees (15%–30%) were excessive. The court later sided with Epic Games, Inc., ordering the Play Store to be opened, and Google appealed but lost.
On Aug. 8, Google asked the court to stay the effect of the order, but the U.S. Supreme Court rejected the request last month, effectively concluding with a final victory for Epic Games, Inc.