Google and Epic Games have reached a proposed settlement to resolve a long-running antitrust lawsuit over the Google Play Store and Android app distribution. The agreement includes changes aimed at reducing developer fees and improving access to alternative app stores and payment systems.
In a joint court filing submitted Tuesday, the two companies asked U.S. District Judge James Donato to approve the settlement. The proposal is intended to bring an end to Epic’s 2020 lawsuit, which accused Google of using its control over the Android ecosystem to stifle competition and maintain high in-app purchase fees.
Google has denied any wrongdoing throughout the legal battle. The proposed deal follows a 2023 jury trial that Epic won, which led Donato to issue a broad injunction ordering reforms to Google’s Play Store policies. Google had objected to that ruling, arguing that it went too far and posed risks to its business and user security.
Under the proposed settlement, Google would allow users to more easily install third-party app stores that meet newly defined security and safety standards. Developers would also gain the ability to direct users to alternative payment systems, both inside apps and through external links.
In return, Google would apply a capped service fee of either 9% or 20% for in-app transactions made outside its payment system but still within Play-distributed apps.
Sameer Samat, Google’s president of the Android Ecosystem, said the proposal balances user protection with greater flexibility for developers. He added that Google looks forward to discussing the agreement with Judge Donato, who is scheduled to meet with attorneys on Thursday in a previously arranged hearing.
Epic Games CEO Tim Sweeney welcomed the deal, calling it “awesome” and claiming it reinforces Android’s original goal of being an open platform.
The current proposal would revise Donato’s earlier injunction but keep several of its core terms intact. Google had attempted to challenge the ruling in higher courts. Its appeal was rejected by a federal court in July, and the U.S. Supreme Court declined to intervene last month.
This settlement only addresses Epic’s Android lawsuit. Google still faces several other legal challenges related to its search and advertising practices, brought by state and federal authorities, as well as consumer and commercial plaintiffs. The company has denied all claims in those cases.