Android developers may soon benefit from a new set of commercial rules following a likely settlement between Epic Games and Google.
After years of contentious litigation, Epic Games and Google have reached a “comprehensive settlement” and are now jointly asking the US District Court to approve a new framework for app distribution and in-app billing.
Sameer Samat, President of the Android ecosystem at Google, said: “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.”
Tim Sweeney, Founder and CEO of Epic Games, added his perspective: “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.”
This new proposal, if accepted by the court, would replace the court’s October 2024 injunction with terms the two companies have negotiated.
For Android developers, the outcome dictates rules around how apps are sold, monetised, and delivered outside the traditional Play Store walls. The settlement aims to allow the companies “to put their disputes aside while making Android a more vibrant and competitive platform for users and developers.”
Friction and Fees
The proposed changes directly address the two core markets identified by the jury: “Android app distribution and Android in-app payment services for digital goods and services.” For businesses, the impact centres on friction and fees.
First, the proposal tackles app distribution. The original injunction included remedies for ‘Catalog Access’ and ‘Third-Party Store Distribution’. The new plan scraps those for a ‘Registered App Stores’ programme. This is designed to address the “install frictions” that Epic contended at trial to be a major competitive challenge for rival app stores.
Operationally, this means qualified third-party app stores (those meeting “reasonable, neutral criteria”) would get a “streamlined installation flow.” Instead of multiple warnings, a user downloading a store from a website would see a “single install screen using neutral language.” Once installed, that store could “install and manage apps on the device.”
The business implications are broad. The original injunction was limited to the US. The new remedy requires “changes to the Android operating system that would occur everywhere,” offering improved rules for developers globally. It also lasts much longer, extending to 2032. This gives developers and businesses a predictable, long-term horizon for planning distribution strategies that may bypass the main Google Play Store.
Second, the proposal makes changes to in-app billing. It maintains the existing injunction’s requirement that Google allow developers to flexibly steer users to payment alternatives to Google Play Billing. Developers will be able to offer alternative in-app payment methods and, notably, may use external links that take users outside the app to complete transactions.
A developer could, for example, “show users the two prices for the different payment options side-by-side in the app,” charging a lower price for their own processor. The proposal explicitly states Google “may not burden the use of in-app alternative payment options or external links by limiting their design, placement, formatting, or messaging.”
Google retains oversight mechanisms
While the proposal opens new avenues, it is not a free-for-all. The settlement represents a negotiated compromise, and Google retains mechanisms for oversight, citing security and safety.
To qualify for the new ‘Registered App Stores’ programme, stores must meet “specified neutral safety and security criteria.” Google will be permitted “to charge reasonable fees to cover the operational costs of this review process.”
A three-member technical committee, established by the original injunction, will remain in place to “review disputes or issues related to the required technology and processes.” Developers should expect a formal vetting process for the new Android rules, not an open door.
The biggest implementation detail, however, concerns service fees. While developers gain the ability to use alternative billing, Google does not forfeit its commission. The filing shows that Google argued it provides “valuable services” on transactions “in Play-distributed apps that use alternative payment options.”
The compromise? The new injunction specifies “certain maximum fees that Google would be allowed to charge.” The filing outlines a cap for these alternative transactions of “either 9 percent or 20 percent, depending on the type of transaction.”
This resolves a major point of contention. The parties admit they were preparing to dispute the issue of whether Google may “charge service fees on transactions processed using alternate payment methods.”
For developers, this provides certainty. The filing notes these “service fee ceilings” will provide “immediate, meaningful benefits to developers and consumers.” It codifies the cost of using alternative billing, allowing finance departments to build accurate ROI models for in-app purchases.
What the new rules would mean for Android developers
For developers, this proposed settlement provides a clearer and longer-term roadmap for the Android platform.
The previous arrangement, set by the court’s existing injunction, was heading towards “inevitable disputes between the parties,” particularly over the complex ‘Catalog Access’ remedies. The proposed deal avoids these “implementation disputes” by replacing them with a globally consistent, albeit regulated, ‘Registered App Store’ pathway.
The key action for businesses is to re-evaluate mobile monetisation strategies. The ability to steer users to external payments, combined with a hard cap on Google’s service fee (at 9% or 20%), creates a concrete financial model. Teams can now calculate the precise benefit of implementing their own payment processor versus using Google Play Billing.
While the settlement is contingent on the court’s approval, the joint nature of the motion makes it a powerful indicator of the future. The era of ambiguity may be ending, replaced by negotiated rules for the Android ecosystem that – while not eliminating Google’s platform fees – provide developers with the “certainty of lower prices that begin promptly and last through 2032.”
See also: Google upgrades Gemini AI for Android enterprise apps
Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is part of TechEx and is co-located with other leading technology events including the Cyber Security Expo, click here for more information.
Developer is powered by TechForge Media. Explore other upcoming enterprise technology events and webinars here.