Google and Epic Games Announce Settlement ⇥ theregister.com

Sameer Samat, Google’s president of Android Ecosystem:

Today we are announcing substantial updates that evolve our business model and build on our long history of openness globally.  We’re doing that in three ways: more billing options, a program for registered app stores, and lower fees and new programs for developers.

Epic Games CEO Tim Sweeney on X:

Google is opening up Android all the way with robust support for competing stores, competing payments, and a better deal for all developers. So, we’ve settled all of our disputes worldwide. THANKS GOOGLE!

Simon Sharwood, the Register:

Epic Games approved of the changes.

“These changes will evolve Android into a true open platform with competition among stores,” the company stated. “Globally, developers will have choices in how they make payments using Google Play’s payment system and competing payment systems, with reduced fees and the ability to point users outside apps to make purchases.

Epic also said “Google will take steps to support the future open metaverse,” a probable reference to the deal that will see games made with the Unity engine made available within Fortnite.

Neither Sweeney nor Epic Games can express anything less than elation with this outcome in no small part because they signed away their ability to do that. It still amazes me that concession ended up in the final agreement. It seems like the kind of thing that Google’s very expensive lawyers would pitch as leverage with Epic Games’ not-quite-as-expensive lawyers. n an interview with Dean Takahashi, of GamesBeat, it seems like Epic was eager to settle with terms that apply worldwide:

Asked why Sweeney decided to settle rather than litigate in every court in the world, he said, “This is just a really important thing that people should understand. The Epic versus Google court decision in the United States only has effect in the United States. It does nothing about the rest of the world. And the United States is about 30% of Google Play revenue and about 5% of Google Play users.”

He said it was never going to be a complete worldwide solution, and the court, throughout the proceedings, very clearly, said that the court wanted to establish competition among stores and competition among payments without setting prices in the market.

Curiously, not long before this settlement, Google announced it would begin requiring Android developers to be verified for their software to be installable, even by side-loading. I am curious if the combination of these changes meaningfully impacts users’ security or privacy. At a glance, it seems like a welcome set of improvements that, sure, was assuredly not an altruistic fight by Epic Games, and will probably result in Sweeney getting even richer.

Regardless, it is notable for these sweeping changes to be brought to Android phones worldwide in the coming years, while Apple’s App Store is a patchwork of policies difficult for developers to navigate. It is too bad there is not really competition between these stores. Most people who buy smartphones choose the platform as a whole and accept whatever software experience they are provided. They do not need to bother themselves with the business terms of each store. With the improvements to third-party stores on Android, it sets up the possibility for greater competition within that platform. Apple should do the same.