Epic Games & Google settle legal feud over Android app store

A Google sign is displayed at the company's office in San Francisco, April 12, 2023. (AP Photo/Jeff Chiu, File)

SAN FRANCISCO — Video game maker Epic Games has reached a “comprehensive settlement” with Google that could end its 5-year-old legal crusade targeting Google’s Play Store for Android apps.

Epic and Google revealed the settlement agreement in a joint legal document they filed in a San Francisco federal court Tuesday.

They said it “would allow the parties to put their disputes aside while making Android a more vibrant and competitive platform for users and developers.”

Epic, which makes the hit online game Fortnite, won a victory over the summer when a federal appeals court upheld a jury verdict condemning Google’s Android app store as an illegal monopoly. The unanimous ruling cleared the way for a federal judge to enforce a potentially disruptive shake-up that’s designed to give consumers more choices. Google took another hit in October when the U.S. Supreme Court refused to protect it from the judge’s required app store makeover.

The specific terms of the settlement agreement remain under seal and must be approved by U.S. District Judge James Donato, but the two companies broadly outlined some of their agreements in their joint filing.

They said the settlement closely follows Donato’s October 2024 ruling ordering Google to tear down the digital walls shielding its Android app store from competition. That included a provision that will require its app store to distribute rival third-party app stores so consumers can download them to their phones, if they so desire.

Google had hoped to void those changes with an appeal, but the ruling issued in July by the Ninth Circuit Court of Appeals delivered a legal blow for the tech giant, which has been waylaid in three separate antitrust trials affecting different pillars of its internet empire.

Epic Games filed lawsuits targeting Google’s Play Store as well as Apple’s iPhone app store in 2020 in an attempt to bypass exclusive payment processing systems that charged 15% to 30% commissions on in-app transactions. The settlement agreement proposed Tuesday calls for Google to set certain limits on those payments.

Epic Games CEO Tim Sweeney called the settlement an “awesome proposal” in a social media post. Sameer Samat, president of Google’s Android division, said it will “focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition all while keeping users safe.” Google had previously complained that Donato’s forcing of more app store competition posed security concerns. A hearing is set for Thursday.

The Associated Press