Google finalized an overhaul to cut fees on the Android app marketplace Play Store and allow external payments. As a result, the five-year legal dispute with the developer of "Fortnite," Epic Games, Inc., has also concluded.
Samir Samat, Google's vice president for the Android ecosystem, said on the 4th (local time) that the default in-app payment fee for Android apps will be reduced from 30% to as low as 15%, and subscription service fees will be cut to 10%.
An additional 5% fee applies when using Google's payment system, but that extra fee does not apply if a developer uses its own payment system or directs users to pay via an external website.
Google said the move is intended to expand user choice and promote competition.
The new fee structure will first take effect in the United States, the United Kingdom, and the European Economic Area through Jun. 30, and is expected to be introduced to Korea's Play Store within the year.
Google also said it plans to pre-register external app marketplaces that meet certain quality and security standards so that users can download apps from app stores other than the Play Store. However, introducing external app marketplaces in the United States requires court approval.
Building on this overhaul, Google said it has settled and ended all disputes with Epic Games, Inc.
Tim Sweeney, Epic Games, Inc. Chief Executive Officer (CEO), said on X that "Google has opened up Android to support competing app marketplaces and payment methods and to offer better terms," adding, "We have settled and concluded all disputes worldwide."
Accordingly, Fortnite, which had been removed from the Play Store, will return to Play Stores worldwide in phases. In the United States, it returned first in Dec. last year.
Epic Games, Inc. filed a lawsuit in 2020, saying Google's in-app payment fee policy violated antitrust law. Epic Games, Inc. won both at trial and on appeal, and Google's request for an injunction was rejected by the U.S. Supreme Court in Oct. last year.
Epic Games, Inc. is also pursuing a similar lawsuit against Apple.