Google lowering fees on Android app store following settlement with Epic Games

Google has agreed to lower fees on its Android app store and permit alternative app stores, resolving a lawsuit brought by Epic Games in 2020. The changes, filed with a federal court, come after the Supreme Court declined to review a ruling that found Google’s Play Store practices to be an illegal monopoly. Google will decrease commissions on subscriptions and e-commerce to the 10-20% range, with an option for a 5% payment processing fee. Developers can also utilize alternative payment systems, and consumers will be able to download apps from certified alternative stores.

Epic Games CEO Tim Sweeney hailed the decision as a step towards a truly open platform for Android. Google plans to roll out these changes initially in the United States, the United Kingdom, and the European Union, pending regulatory approval. While the lower fees may impact Alphabet Inc.’s profits, the company’s substantial market value allows it to absorb the change.

This settlement contrasts with ongoing legal battles with Apple, where Sweeney is less optimistic about similar concessions. The outcome underscores the importance of competition in the app store market, with Sweeney stating, “You can’t always get what you want, but if you try, you can often get what you need.”

(Source：New York Post)