(Nov 5): Google and Epic Games Inc, the maker of the popular Fortnite game, reached a settlement in their long-running antitrust fight over how developers distribute and monetise apps on Android phones, according to a court filing.
The exact terms of the agreement weren’t disclosed, but the accord comes as the Alphabet Inc unit had already begun making major court-ordered changes to its Google Play store that would open it up to outside competition. It faces a series of deadlines over the coming months after failing to win relief from the US Supreme Court.
The companies told the judge presiding over their five-year court battle that they want to modify the order he imposed on Google.
A jury sided with Epic in December 2023 over its claims that Google engaged in anticompetitive conduct by paying phone manufacturers and popular app developers to exclusively use its app store. Following the verdict, US district judge James Donato in San Francisco ruled last year that Google must be more accommodating to rivals.
The judge banned preferential treatment for Google services on Android phones and required the company to let mobile app developers steer customers to lower payments outside of the Play Store. He also ordered Google to make its app catalogue available to rival app stores so that they can better build a competing product.
Under the settlement, much of what Donato ordered will still apply, with some key differences. That includes caps on commissions Google can charge for purchases outside the Play Store of 9% or 20%, depending on the type of transaction. The settlement also nixes app catalogue access in favour of “registered app stores” that will be given equal treatment to the Play Store on devices using Google’s Android operating system.
See also: Volkswagen to develop own chip for advanced driving assist in China push
“At the court’s prompting, the parties have engaged in several rounds of negotiations, over several months, involving their most senior executives,” the two companies said in their joint court filing. “The parties have agreed to resolve their disputes with a settlement that both parties believe will advance the evolution of the Android platform.”
The settlement would also resolve related litigation between Epic and Samsung Electronics Co, according to the court filings.
Sameer Samat, the head of Android at Google, said in a post on X that the settlement will “focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition all while keeping users safe”.
See also: Amazon sues to stop perplexity from using AI tool to buy stuff
“Google has made an awesome proposal,” Epic chief executive officer Tim Sweeney said in his own post on X. “It genuinely doubles down on Android’s original vision as an open platform.”
Uploaded by Tham Yek Lee
