Google parent company Alphabet (GOOGL) has settled a long-running lawsuit with Epic Games over charges levied in its Android app store.
As part of the settlement, Alphabet has agreed to lower the fees it imposes on app developers such as Epic Games.
The legal battle, which was brought by Epic Games in 2020, alleged that the Google parent company’s excessive app store fees and charges represented an illegal monopoly.
Epic Games had sought to make it easier for alternative payment options to compete against Google’s Play Store system, which charges 15% to 30% commissions on in-app transactions.
The legal settlement with Epic Games comes months after a federal judge ordered an overhaul of Alphabet’s Play Store following a 2023 trial that culminated in a jury declaring Alphabet’s app system an illegal monopoly.
Alphabet will now decrease its commissions for subscriptions and e-commerce transactions in the Play Store to between 10% and 20%, and charge 5% for payment processing.
Additionally, app developers can choose to rely on another payment processing system besides Alphabet’s and consumers will be able to download apps from alternative stores.
Alphabet adds that it will extend this new Play Store model to the rest of the world, pending regulatory approval in foreign countries.
Privately held Epic Games remains embroiled in a similar lawsuit against Apple (AAPL) over its app store and the fees it charges developers.
GOOGL stock has risen 75% over the last 12 months to trade at $303.13 U.S. per share.
Tech Insider
