Google and Epic Games reach groundbreaking agreement
The lengthy legal battle between Epic Games and Google has taken an unexpected turn. The companies have come to an agreement that will change the operation of Android and the Play Store globally. The terms of this deal are yet to receive judicial approval, but both parties seem confident that no significant hurdles lie ahead.
The most recent update regarding the lawsuit dates back to late July, when Google lost its appeal against a ruling that deemed the Play Store and its payment system monopolistic. After losing one last opportunity to appeal to the Supreme Court, Google ultimately struck a deal with Epic Games to resolve this matter.
In a new presentation, the companies unveiled a proposal that still awaits the judge’s approval. This proposal honors previous decisions that favored Epic Games but introduces modifications to the way applications are distributed on Android that will not only affect the United States but have implications worldwide.
Originally, the ruling in favor of Epic Games mandated Google to distribute third-party stores through the Play Store. This means that users wishing to download the Epic Games Store on their mobile devices could do so as if it were any regular application.
Moreover, Google was to ensure that the entire catalog of Play Store apps would be available on alternative platforms. The cherry on top was that app developers would no longer be forced to use Google Play Billing as their payment gateway. Yet, these changes were not universal or permanent as they initially applied only to the U.S. for three years. The situation is set to differ now.
Changes brought forth by the agreement
With the new agreement between Epic Games and Google, several noteworthy changes are on the horizon:
New registered app stores. Google has committed to implementing changes in Android to allow users to easily download and install “certain” third-party stores, such as the Epic Games Store. These will be referred to as “registered app stores,” and both companies have outlined the requirements these platforms must meet to qualify. “[…] All these stores will compete globally against each other and with Google Play for users and developers, thus fostering competition in the Android app distribution market,” the document states.
Expanded availability. While the original judge’s order required Google to distribute third-party stores for three years, this is no longer the case. Google has committed to extending this availability until 2032. Epic Games mentions that, even though the previous measure applied only in the U.S., the changes Google is mandated to implement in Android will be available “everywhere,” facilitating competition within the ecosystem.
Lower commissions and flexibility in payment options. The initial ruling required Google to allow developers to use payment gateways other than Google Play Billing. This remains in effect, but Google will reduce its commission to 9% or 20%, depending on the transaction type and payment method. This modification is also set to be implemented until 2032.
Celebration and jabs at competitors
The agreement received a warm reception, with many celebrating what it signifies for the future of app distribution. While no specific individual has made a statement, there’s a sense of relief in the air. There have been pointed remarks aimed at competitors, emphasizing the contrast between this agreement and the policies of certain other major players in the market, recognized for their restrictive practices.
This new development is hailed as a significant step toward creating a more open platform that allows for easier installation of competing app stores globally, lower commissions for developers on Google Play, and the activation of third-party payments within apps and on the web.
The upcoming judicial hearing will be critical in determining the final shape of this agreement. Observers eagerly await the outcome, as it could lead to a transformative shift not just for Android but for the entire app marketplace.
