Google proposes app store reforms as part of Epic Games settlement

[Google headquarters in London, UK]
VV Shots/iStock Editorial via Getty Images

Alphabet's (GOOG [https://seekingalpha.com/symbol/GOOG]) Google has reached a comprehensive U.S. court settlement with “Fortnite” video game maker Epic Games, agreeing to Android and app store reforms aimed at lowering fees and increasing competition.

In a joint filing, [https://fingfx.thomsonreuters.com/gfx/legaldocs/xmpjqoyrbvr/Epic%20-%20Google%20settlement%2020251104.pdf] in the federal court in San Francisco, the companies asked U.S. District Judge James Donato to consider a proposal resolving Epic’s 2020 antitrust lawsuit, which accused Google of illegally monopolizing the way users access apps and make in-app purchases on Android devices.

The proposal requires Donato's approval. The judge oversaw a jury trial in 2023 that Epic won, and last year, he issued an injunction mandating Play app store reforms that Google said went too far. Google said the reforms potentially harmed its competitive position and compromised user safety.

Under the new proposal, Google (GOOG [https://seekingalpha.com/symbol/GOOG]) will let users more easily download and install third-party app stores that comply with updated security and safety standards. Developers will also be able to guide users to alternative payment options, both within apps and through external links.

For Play Store apps using these alternatives, Google plans to apply a capped service fee of 9% or 20%.

In October 2024, Google said [https://seekingalpha.com/news/4156821-google-to-appeal-epic-games-verdict-to-show-apple-and-android-clearly-compete#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] it would appeal the court verdict that ruled in favor of Epic, which makes the popular video game Fortnite, and the tech giant asked courts to pause the remedies proposed by the online game store operator, which it alleged would hurt its ability to compete with rival Apple (AAPL [https://seekingalpha.com/symbol/AAPL]).

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