Google and Epic Games Reach Settlement in 5-Year App Store Dispute

According to AP News, gaming company Epic Games and tech giant Google LLC have jointly filed a settlement agreement in the U.S. District Court in San Francisco, announcing a resolution to conclude litigation first brought by Epic in 2020.

Epic’s complaint accused Google of monopolising app distribution and in-app billing on Android’s Google Play Store, restricting third-party app stores and requiring use of Google’s billing system at standard 15-30% commission rates.

In December 2023 a jury found in favour of Epic, determining Google had illegally maintained monopoly power over Android app distribution through the Play Store and related payment systems.

In October 2024, U.S. District Judge James Donato ordered Google to allow third-party app stores on Android devices, permit sideloaded payment options, and cease certain exclusive-dealing arrangements for a three-year period.

On July 31 2025 the Ninth Circuit Appeals Court unanimously rejected Google’s effort to overturn the injunction, clearing the path for reform.

The joint filing states the settlement will “allow the parties to put their disputes aside while making Android a more competitive platform for users and developers.”

Although full terms remain under seal, publicly stated components include:

• A reduction in the billing commission band from Google’s previous 15-30 % to a new range between 9-20%. 
• Google’s commitment to implement changes consistent with Judge Donato’s October 2024 order, including third-party storefront access.
• The settlement awaits approval from Judge Donato, with a hearing scheduled for Thursday.

Epic’s original case was triggered when it updated its game Fortnite to include direct payment options, bypassing Google Play Billing, and was subsequently removed from the Play Store.

Google has maintained that its Play Store policies support device security and protect users from risks if alternative stores or billing systems proliferate unchecked.

Epic Games CEO Tim Sweeney called Google's proposal "Awesome" while sharing the news on X.

Developers and device manufacturers had previously provided evidence in the trial that Google entered revenue-sharing deals with OEMs and app developers to suppress rival app stores.

In its joint filing the two companies did not specify whether the settlement includes separate financial payments from Google to Epic or other developers.

The resolution ends one of the most closely watched antitrust cases in the mobile app market in recent years.