Google and Epic Games have agreed on a deal that will potentially end their long-running dispute and pave the way for third-party app stores to be made available on Android worldwide.
In October 2024, Judge James Donato ruled that Google had to allow third-party app stores to be distributed via Google Play. Then, last month, Google made changes to allow third-party payment systems after a US court ruling said Google could no longer restrict customers to using Google Play Billing. However, both judgements applied only to the United States.
Now, Google and Epic have filed a joint motion that outlines a deal in which third-party app stores will be allowed on Android worldwide. In addition, the deal proposes that rather than its traditional 30% commission, Google will take a cut of “either 9% or 20%, depending on the type of transaction” for payments made through Play-distributed apps that use alternative payment options.
It’s currently not clear from the proposal how Google will decide which rate to apply to transactions.
The proposal still has to be approved by the US court. The next hearing is tomorrow (November 6), and if accepted by the court, the deal will run until 2032 and apply worldwide.
In a post on X, Epic CEO Tim Sweeney hailed the deal as a breakthrough. “Google has made an awesome proposal, subject to court approval, to open up Android in the US Epic v Google case and settle our disputes. It genuinely doubles down on Android’s original vision as an open platform to streamline competing store installs globally, reduce service fees for developers on Google Play, and enable third-party in-app and web payments.
“This is a comprehensive solution, which stands in contrast to Apple’s model of blocking all competing stores and leaving payments as the only vector for competition.”
Android president Sameer Samat was similarly jubilant. “Exciting news!,” he said in a post on X. “Together with Epic Games we have filed a proposed set of changes to Android and Google Play that focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition all while keeping users safe. If approved, this would resolve our litigations. We look forward to discussing further with the Judge on Thursday.”
Several companies have already launched, or are preparing to launch, alternative app stores and third-party payment systems, and the new deal is likely to accelerate those efforts. Just last month, Epic Games unveiled its Epic Web Shops service for PC and mobile devices.
“This marks an important moment for the Android ecosystem”
Chris Hewish, Xsolla
Chris Hewish, the president of video games payment provider Xsolla, welcomed the proposed deal between Epic and Google. “This marks an important moment for the Android ecosystem,” he said in a statement provided to GamesIndustry.biz. “By supporting alternative app stores and payment systems, Google is opening the door to greater choice for both developers and users.
“Game developers, in particular, stand to benefit as microtransactions, subscriptions, and cross-platform offers can now operate with more flexibility. This could help smaller studios compete and innovate more easily, while providing users with more competitive pricing and diverse options.
“At the same time, this openness introduces new considerations, such as maintaining security, providing reliable updates, and ensuring overall store quality, to ensure a safe and consistent experience for everyone. Overall, it’s a positive step toward a more open, balanced, and innovative mobile gaming environment.”
Gil Tov-Ly, CMO of the payment provider Appcharge, also welcomed the new proposal. “The Google-Epic deal is the moment we’ve been waiting for,” he said in a statement sent to GamesIndustry.biz. “Thirty percent never made economic sense for publishers, and stores now have to earn their keep. Credit to Epic, the DTC crowd, and bold studios for pushing this through. The result is real choice for players and publishers, and web stores are front-and-centre for owning the relationship and fixing the unit economics.”
