Epic Games & Google Settle Their Lawsuit, Which Might Lead to Positive Changes for All Android Developers
Google agreed to lower its fee.
Epic
Epic Games has been in and out of court with Google for years, trying to make its own store available on Android devices by accusing Google of a payment system monopoly.
Several months ago, Epic won once again when Google's appeal was refused, meaning Google would have to distribute other app stores in Google Play and give competitors access to the full catalog of GP apps. It would also be banned from a requirement that apps use Google Play Billing.
However, the lawsuit has suddenly taken a new turn, and Epic and Google have agreed to settle with new conditions. The previous ruling only applied to the United States and would have lasted 3 years, but the new agreement might change the tide for the whole world.
As reported by The Verge, Google is agreeing to reduce its standard fee to 20% or 9%, depending on the kind of transaction, 20 for a purchase that provides "more than a de minimis gameplay advantage" and 9 if it doesn't, and the date on which the app was installed – the new fees will be applicable to new installs only.
"Google Play and Google Android shall not charge revenue proportionate or per purchase fees for apps first installed/updated from Google Play on or after October 30, 2025 (“New Installs”) other than the Google Play service fees set forth below; fees for the use of Google Play Billing; and applicable taxes."
Google will also create a new program in the next version of Android where alternative app stores can register with Google, so users can install them easily. If everything goes as planned, the changes will be applied to developers around the world starting March 31, 2026, until June 2032.
In this period, "for purchases in apps installed or updated by Google Play that do not qualify as New Installs, Google may not charge a service fee greater than 20% when payments are processed via external web links."
"Exciting news! 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," said Sameer Samat, the president of Google's Android ecosystem.
Tim Sweeney, Epic's CEO, who has been fighting monopolies for a long time now, also had something to say:
"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."
The proposal says that the 20% or 9% fee mentioned before doesn't include Google’s cut for Play Billing, which is 5%, according to Google's spokesperson Dan Jackson: "This new proposed model introduces a new, lower fee structure for developers in the US and separates the service fee from fees for using Google Play Billing."
And here's what Chris Hewish, President of Xsolla, thinks about the news:
"This settlement marks a pivotal shift in the mobile app economy. By opening Android to third-party stores and alternative payments, it begins to fulfill the platform’s long-standing promise of openness. It’s a meaningful win for developers, especially in gaming, who’ve long sought more control over distribution and monetization. The challenge now is turning these policy changes into practical opportunities, and that’s exactly where Xsolla is ready to help."
While the Google Play store is "free to assess service fees on transactions, including when developers elect to use alternative billing mechanisms," it may not happen in practice: "If the user chooses to pay through an alternative billing system, the developer pays no billing fee to Google," Jackson told The Verge.
According to the proposal, Google could theoretically get its cut when you click out to an app developer’s website and pay for the app there if it happens within 24 hours.
So if the agreement gets approved, alternative payment options will be shown together with Google Play Billing, and developers will be able to set their own prices.
We should hear more on Thursday. For now, subscribe to our Newsletter, join our 80 Level Talent platform and our new Discord server, follow us on Instagram, Twitter, LinkedIn, Telegram, TikTok, and Threads, where we share breakdowns, the latest news, awesome artworks, and more.
