Epic Games and Google settle Android app store dispute with new competition framework

New Delhi: After more than five years of legal battles, Epic Games and Google have reached a wide-ranging settlement to end their long-running dispute over app distribution and in-app billing on the Android platform. The agreement, which will also resolve Epic’s separate case against Samsung (Epic II), is aimed at making Android more open and competitive for developers and consumers.

As part of the settlement, both companies have jointly requested the U.S. District Court to approve a Proposed Modified Injunction that will replace the existing one issued in October 2024. The updated injunction, if approved, will establish a new framework to govern Google’s conduct in the U.S. while extending certain remedies globally.

Under the proposed order, Google will continue to be barred from practices that the court had earlier deemed anti-competitive. This includes revenue-sharing with potential rivals, exclusivity agreements with developers, and restrictive deals with device makers or carriers that hinder third-party app stores.

A key feature of the new injunction is the introduction of “Registered App Stores,” which will allow qualified third-party app stores to be downloaded and installed seamlessly by Android users. These stores will be subject to neutral safety and security standards set by Google and reviewed by an independent Technical Committee. Once approved, they will have streamlined installation rights similar to Google Play, promoting easier competition across global markets.

The modified injunction will also uphold the existing rule allowing developers to direct users toward alternative payment systems instead of Google Play Billing. Developers using such options will be subject to lower service fees, either 9% or 20%, depending on the transaction type, offering them more flexibility and reduced costs through 2032.

Both Epic and Google said the new agreement reflects a “balanced and practical” approach that benefits users, developers, and the broader Android ecosystem. The companies expect that this settlement will eliminate implementation disputes and reduce the need for further court intervention.

The settlement’s approval is contingent upon two conditions: the court’s formal acceptance of the modified injunction and the absence of conflicting remedies in a related case involving Google and U.S. states.

Epic and Google described the deal as a step forward in building a fairer app marketplace, while signalling the end of one of the most high-profile antitrust battles in the technology industry.