Google and Epic reach settlement — what it means for Android, app stores and payments

Google and Epic Games have filed a proposed settlement in the federal court in San Francisco that would end their long‑running antitrust dispute over Google Play distribution and in‑app billing. The deal keeps most of Judge James Donato’s original injunction but adds negotiated modifications intended to expand developer choice, permit alternative payment methods and allow third‑party app stores to be installed on Android devices.

The case began in 2020 when Epic accused Google of illegally monopolizing app distribution and in‑app billing on Android. A 2023 ruling sided with Epic, and Google’s appeals and requests to pause the injunction — including a Supreme Court request — were denied. The proposed settlement is now before Judge Donato for approval.

Key points of the proposal

• Third‑party stores: Android devices would be allowed to install third‑party app stores that meet “reasonable, neutral criteria,” enabling competition against Google Play.
• Alternative payments: Developers and users could use alternative in‑app and external payment mechanisms while complying with Google’s security and safety standards.
• Fee caps: Google and Epic specified maximum fees for external payments — either 9% or 20% depending on the transaction type — to limit the cost of non‑Play billing paths.
• No exclusivity payments: The deal would bar Google from paying manufacturers or developers to be the exclusive preinstalled store or distribution channel.

Why it matters

If approved, the settlement would materially change how apps are distributed and monetized on Android. Third‑party stores and alternative payments could reduce Google Play’s dominance, potentially lowering costs for developers and offering more choices to users. At the same time, Google and Epic have added safeguards around security and neutral criteria to try to prevent malicious stores or confusing user experiences.

Reactions

Google framed the proposal as expanding choice and competition while keeping users safe. Epic’s CEO described the plan as strengthening Android’s open‑platform vision by streamlining competing store installs and cutting fees for developers. Still, the details — including the fee structure and criteria for approved stores — will determine how much competition actually emerges.

What to watch next

• Judge Donato’s response: the court must approve the settlement for it to take effect.
• Implementation details: how Google enforces the security criteria and how stores are vetted and distributed globally.
• Developer and user adoption: whether major app publishers choose to distribute via third‑party stores or use external payments at scale.

For ongoing coverage and the original reporting, see the news roundup and court filings (opens in a new tab): Engadget — Google and Epic reach settlement.

Discussion: Would easier access to third‑party stores and external payments make Android better for developers and users — or could it introduce security and compatibility headaches?