Epic and Google agree to settle their lawsuit and change the fate of Android globally

Just when we thought Epic against Google It might just be over One rejection from the Supreme Court From a complete win for Epic, the two sides agreed to the settlement on Tuesday evening. And if Judge James Donato, Which ordered Google to open up Android to third-party storesagrees to the changes, as it could turn an Epic victory into a permanent global victory.

previouslyJudge Donato He agreed to some of Epic’s biggest demands. He issued a permanent injunction that would force Google to keep competing app stores within its Google Play Store, and give those competing stores access to the full catalog of Google Play apps, to restore competition to the Android market. The injunction also forced Google to stop requiring developers to use Google Play Billing, after a jury found that the company illegally linked its app store to its payments system.

But these changes only apply to the United States, only last for three years, and do not change the amount Google will charge in App Store fees.

now, Google appears to be agreeing to lower its standard fee to 20 percent or 9 percent, depending on the type of transaction. It agrees to build new software into the next version of Android where alternative app stores can Score With Google, we (in theory) become first-class citizens. She agrees to do these things all over the world, And not just in the United States, until June 2032, that is, six and a half years from now.

“If approved, this will resolve our lawsuits,” Samir Samat, Google Android president, wrote Tuesday evening. Introducing the news:

Exciting news! In collaboration with Epic Games, we’ve introduced a proposed set of changes to Android and Google Play that focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition, all while keeping users safe. If approved, this would resolve our lawsuits. We look forward to further discussion with the judge on Thursday.

And here Epic CEO Tim Sweeney agreed that this would “settle our disputes”:

Google has made an excellent proposal, subject to court approval, to open up Android in US Epic v Google and settle our disputes. It truly doubles down on Android’s native vision as an open platform to simplify installations for competing stores globally, reduce service fees for developers on Google Play, and enable third-party in-app and web payments. This is a comprehensive solution that contradicts Apple’s model of blocking all competing stores and leaving payments as the sole vector of competition. Public filings are live.

The details of how, when, and where Google will charge its fees are complex, and seem somewhat tailored to suit the needs of a game developer like Epic Games. Google could charge 20 percent for an in-app purchase that provides “more than just a simple gameplay feature,” for example, or 9 percent if the purchase doesn’t.

Although 9 percent also appears to be the maximum for apps and in-app subscriptions sold through Google Play, the proposal notes that this amount does not include Google’s Play Billing discount if you purchase it through this payment system. (Google is currently charging 15% for subscriptions, 15% of the first $1 million in developer revenue each year, and 30% after that, although it’s also It makes special deals with some big developers.)

If you use an alternative payment system, Google will still get a cut: “The Google Play Store is free to assess service fees on transactions, including when developers choose to use alternative billing mechanisms,” the proposal states. Google will also be able to get its share when you click through to an app developer’s website and pay for the app there, as long as it happens within 24 hours.

Speaking of Google’s Play Billing, it seems like Epic is now okay with Google continuing to force developers to provide it in their apps. Instead, “alternative payment options should appear alongside Google Play billing,” though developers will be able to set their own pricing and even offer lower rates if you choose alternative billing instead.

If Judge Donato approves the settlement and these revisions, it looks like it could also resolve one of Epic’s biggest arguments against the big app stores from day one: Friction and “Horror screens” Which Epic claimed prevents users from downloading alternative app stores.

“Beginning with the release of the next major Android release through June 30, 2032, Google will modify future versions of the Android operating system so that a user can install a registered app store from a website by tapping on a single store installation screen using a neutral language. This will also grant permission for the store to install apps,” the proposal states.

The proposed amended injunction preserves many of Epic’s other gains, including those already effective today: It must stop sharing money or royalties with phone makers, carriers, and app developers in exchange for Google Play exclusivity or pre-installation, and allow developers to communicate with their customers about pricing outside of the Play Store.

Google and Epic say they will discuss this proposal with a judge on Thursday, November 6. We’ll tell you what we hear.

Here’s the proposed amended injunction in full: