Google and Epic Games, the maker of Fortnite, have reached a comprehensive settlement in their five-year-long legal battle over the Android app store. The two tech giants announced the agreement in a joint filing with US District Judge James Donato, who will now review the terms before approving them.
The terms of the deal remain under seal, but sources close to the negotiations suggest that it closely follows Donato's October ruling, which ordered Google to dismantle its digital walls shielding its Android app store from competition. This included a provision requiring the app store to distribute rival third-party app stores for consumers to download on their phones.
The move comes as a significant victory for Epic Games, which had been fighting against Google's dominant position in the mobile gaming market since 2020. The company filed lawsuits targeting both Google's Play Store and Apple's iPhone App Store, seeking to bypass exclusive payment processing systems that charged up to 30% commissions on in-app transactions.
As part of the settlement, Google is expected to limit its payments to between 9% and 20% depending on the transaction, a significant reduction from its current rates. The agreement also aims to promote greater competition and diversity in the Android app store ecosystem, allowing consumers to access a wider range of apps and developers.
Epic CEO Tim Sweeney hailed the settlement as an "awesome proposal" in a social media post, signaling that his company was satisfied with the outcome. With this agreement, Google and Epic Games are finally putting their long-standing dispute behind them, paving the way for Android users to benefit from increased competition and innovation in the mobile gaming space.
The implications of this settlement will be closely watched as it sheds light on the ongoing regulatory landscape for tech giants like Google and Apple. As the mobile app market continues to evolve, consumers can expect more choices and options at their fingertips, driving growth and innovation in the industry.
The terms of the deal remain under seal, but sources close to the negotiations suggest that it closely follows Donato's October ruling, which ordered Google to dismantle its digital walls shielding its Android app store from competition. This included a provision requiring the app store to distribute rival third-party app stores for consumers to download on their phones.
The move comes as a significant victory for Epic Games, which had been fighting against Google's dominant position in the mobile gaming market since 2020. The company filed lawsuits targeting both Google's Play Store and Apple's iPhone App Store, seeking to bypass exclusive payment processing systems that charged up to 30% commissions on in-app transactions.
As part of the settlement, Google is expected to limit its payments to between 9% and 20% depending on the transaction, a significant reduction from its current rates. The agreement also aims to promote greater competition and diversity in the Android app store ecosystem, allowing consumers to access a wider range of apps and developers.
Epic CEO Tim Sweeney hailed the settlement as an "awesome proposal" in a social media post, signaling that his company was satisfied with the outcome. With this agreement, Google and Epic Games are finally putting their long-standing dispute behind them, paving the way for Android users to benefit from increased competition and innovation in the mobile gaming space.
The implications of this settlement will be closely watched as it sheds light on the ongoing regulatory landscape for tech giants like Google and Apple. As the mobile app market continues to evolve, consumers can expect more choices and options at their fingertips, driving growth and innovation in the industry.