Summary
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Google and Epic Games proposed a legal agreement to end antitrust action initiated in 2020;
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If approved, the agreement will reduce Play Store fees and facilitate the use of third-party payment systems in applications;
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Agreement still needs to be approved by the United States Court.
After five years in court, the soap opera “Google x Epic Games” is coming to an end. Both companies announced a legal settlement that opens up third-party app stores to explore the Android ecosystem and reduces service fees charged to developers.
The agreement is relevant because it could put an end to an antitrust lawsuit that Epic Games has filed against Google since 2020. In the action, the developer of titles such as Fortnite accuses the company controlled by Alphabet of anti-competitive practices.
Epic Games mainly complains about a standard 30% fee charged by Google on purchases made in applications distributed via the Play Store, and difficulties in accessing payment services that charge lower percentages.
The various ups and downs of the process resulted in court rulings that condition Google to allow other app stores to be downloaded from the Play Store and to accept third-party payment systems in the latter, for example.
However, Google had been appealing the decisions using as its main argument that drastic changes to the Play Store could pose risks to the security and privacy of users in the Android ecosystem, making the fight in the courts continue.
What is the agreement like between Google x Epic Games?
In a document presented to a court in San Francisco, in the United States, Google and Epic Games propose that:
- Google facilitates the use of third-party app stores on Android, as long as they meet security criteria;
- Google allows app developers to direct users to alternative payment methods;
- Google charges lower fees, of 9% or 20%, depending on the type of purchase, on transactions made in applications distributed via the Play Store that use alternative payment systems.
To top it off, if the agreement is approved in court, Google commits to implementing the announced measures on a global scale by 2032, and not just in the United States.
Leaders of the two companies celebrated the agreement:
Good news! Alongside Epic Games, we’re presenting a proposed change to Android and Google Play that focuses on expanding developer choice and flexibility, reducing fees, and encouraging more competition while keeping users safe.
Sameer Samat, presidente do Android no Google
That [o acordo] truly reinforces the original vision of Android as an open platform to simplify installation for competing stores globally, reduce service fees for developers on Google Play, and enable third-party payments in apps and on the web.
This is a comprehensive solution, which contrasts with Apple’s model of blocking all competing stores and leaving payments as the only vector of competition.
Tim Sweeney, CEO da Epic Games
But this is still not a happy ending. For the proposal to come into effect, the agreement must be approved by the American courts.
It is worth remembering that Epic is filing a similar lawsuit against Apple and, at least so far, there is no agreement approved between both parties.
With information from Reuters
Source: https://tecnoblog.net/noticias/google-e-epic-games-fecham-acordo-que-pode-encerrar-disputa-judicial/
