Epic Games, the creator of Fortnite, has come to a “comprehensive settlement” with Google, which may mark the end of a legal dispute lasting five years regarding Google’s Play Store for Android applications, as stated in joint legal filings by both parties.
Tim Sweeney, CEO of Epic, hailed the settlement as a “fantastic offer” in a post on social media.
In documents submitted on Tuesday to the federal court in San Francisco, both Google and Epic Games noted that the settlement “enables the parties to set aside their differences while fostering a more dynamic and competitive Android environment for users and developers.”
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Epic secured a significant legal victory over Google earlier this summer when a federal appeals court upheld a jury’s verdict declaring the Android app store an illegal monopoly. The unanimous decision opens the door for federal judges to potentially mandate substantial restructuring to enhance consumer choices.
While the specific settlement terms remain confidential and require approval from U.S. District Judge James Donato, both companies provided an overview of the agreement in their joint filing. A public hearing is set for Thursday.
The settlement appears to align closely with the October 2024 ruling by Donato, which directed Google to dismantle barriers that protect the Android app store from competition. It also includes a provision requiring the company’s app stores to support the distribution of competing third-party app stores, allowing users to download apps freely.
Google had aimed to reverse these decisions through appeal, but the ruling from the 9th Circuit Court of Appeals in July posed a significant challenge to the tech giant, which is now facing three separate antitrust cases that could impact various aspects of its internet operations.
In 2020, Epic Games launched a lawsuit against both Google’s Play Store and Apple’s iPhone App Store, seeking to bypass proprietary payment processing systems that impose fees ranging from 15% to 30% on in-app transactions. The proposed settlement put forth on Tuesday aims to decrease those fees to a range between 9% and 20%, depending on the specific agreement.
Source: www.theguardian.com
