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The companies say the settlement would make ‘Android a more vibrant and competitive platform’.

Google and Epic Games have reached a settlement over a 2020 antitrust lawsuit filed by the video game-maker which found the search engine giant to be a Play Store monopoly.

In a joint filing yesterday (4 November), the two companies proposed remedies which they said would make “Android a more vibrant and competitive platform for users and developers”. The proposals are yet to be accepted by the court.

The proposed remedies put forth by the companies include prohibiting Google from sharing Play Store revenue with competitors, entering into exclusivity agreements with developers, manufacturers and carriers.

Google has also agreed to make changes to Android to enable users to “seamlessly” download and install third-party app stores, as well as apps from such stores. This remedy, the two say, addresses “install frictions” that Epic fought Google with at trial.

In addition, Google has agreed to allow developers to “flexibly” steer users to payment alternatives other than Google Play Billing, which the filing says would promote competition in the Android in-app billing services market.

The legal battle kickstarted half a decade ago when Fortnite was banned from Apple App store and Google Play Store for violating their policies with its in-game payment system that would allow users to pay directly for in-app purchases. The move circumvented the official payment systems put in place by Apple and Google in their app stores.

Though Epic said that the companies taking a 30pc cut from every transaction made through apps on their platforms was unfair.

Google lost the lawsuit in 2023, and a year later, the company was slapped with an injunction which forced it to open up its app store to competition. Google, however, managed to delay the move until it filed for an appeal. Earlier this year though, the company failed to persuade a US appeals panel to overturn the injunction.

In the newly proposed settlement agreement, Google is now agreeing to reduce its standard cut to 20pc or 9pc, depending on the transaction.

“While Google’s fees ultimately will be determined in light of competitive conditions, Epic and Google agree that the service fee ceilings…will provide immediate, meaningful benefits to developers and consumers”, the filing read.

These provisions are set in place until 2032 – a period longer than what was first ordered in the 2024 injunction, which would have forced Google to open itself up for three years.

Plus, the proposal also seeks to settle a separate lawsuit Epic Games had filed against Google and Samsung where it claimed that the two companies coordinated their efforts to block competition in app distribution on Samsung devices.

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