Google settles with Epic Games, lowers Play Store commission to 20%

In Brief

Google and Epic Games settle, reducing Play Store fees and allowing third-party app store approvals.

Key Facts

• Google has announced it will reduce its Play Store commission fee from 30% to 20%, with an optional 5% fee for billing services, according to TechCrunch and The Independent
• The settlement ends a legal dispute between Google and Epic Games over app store fees and monopoly allegations, as reported by The Independent
• Google will introduce a new process for third-party app stores to receive official approval, according to TechCrunch
• The legal battle included rulings condemning Google's app store practices as an illegal monopoly, according to The Independent
• Ars Technica reported that this change marks the end of the 30% standard app store commission era for Google

What Happened

According to multiple sources, Google and Epic Games reached a settlement in which Google will reduce its Play Store commission fee to 20%, with an optional additional 5% fee for billing services. The agreement also includes a new approval process for third-party app stores on Android. This settlement concludes a legal dispute concerning Google's app store fees and monopoly allegations.

Why It Matters

The settlement may affect the economics of app distribution on Android by reducing fees developers pay and allowing more competition through third-party app stores, according to reports. It follows legal scrutiny of Google's app store policies and may influence future regulatory and industry standards for digital marketplaces.