Google cuts app store fees in legal settlement with Epic Games

Google will roll out a series of changes to its Play Store model to settle its years-long legal fight with Epic Games over its app store practices, the company announced Wednesday.

Among the changes include a lowered commission fee of 20 percent on in-app purchases, along with a new program allowing users to more easily install other app stores, Google said in a blog post. In the past, Google has typically collected a commission anywhere from 15 percent to 30 percent on digital purchases within apps.

“With these updates, we have also resolved our disputes worldwide with Epic Games,” the company said. “We believe these changes will make for a stronger Android ecosystem with even more successful developers and higher-quality apps and games available across more form factors for everyone.”

The changes were included in a legal filing Wednesday, though the federal presiding judge must approve the proposal. Google said it is looking to implement the changes in the U.S., U.K. and the European Union by June 30 with other countries following at later dates.

The settlement follows a lengthy legal battle, which began in 2020 when video game developer Epic Games accused Google of shielding its Play Store from competition to continue taking in billions in profit. A San Franscisco jury sided with the Fortnite maker in 2023, finding Google violated antitrust laws and was illegally protected from competition.

The following year, a California judge issued an injunction requiring Google to distribute third-party app stores through Play Store, share its catalog of apps with competitors and allow in-app payment methods other than Google Billing.

Google eventually asked the Supreme Court last September to block the injunction in the antitrust suit, arguing the payment provision would make it more likely for Android users to be duped into providing sensitive information to malicious actors.

The high court denied Google’s request in October, and did not offer an explanation for its ruling as is typical with emergency orders.

Epic Games founder and CEO Tim Sweeney celebrated the settlement in a post on X Wednesday, writing, “Google is opening up Android all the way with robust support for competing stores, competing payments, and a better deal for all developers.”

“So we’ve settled all of our disputes worldwide. THANKS GOOGLE!” he added, stating Fortnite will return to the Google Play Store worldwide “soon.”

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