Just when we thought Epic v. Google might be over, just one Supreme Court rejection away from a complete victory for Epic, both sides have agreed to settle Tuesday evening. And if Judge James Donato, who ordered Google to crack open Android for third-party stores, agrees to the changes, it might turn Epic’s victory into a lasting global one.
Previously, Judge Donato agreed to some of Epic’s biggest demands. He issued a permanent injunction that will force Google to carry rival app stores within its own Google Play Store, and give those rival stores access to the full catalog of Google Play apps, to restore competition to the Android marketplace. The injunction also forced Google to stop requiring developers to use Google Play Billing, after a jury found the company had illegally tied its app store to its payments system.
But those changes only applied to the United States, only lasted for three years, and didn’t change how much Google would charge in app store fees.
Now, instead, Google is agreeing to reduce its standard fee to 20 percent or 9 percent, depending on the kind of transaction and when an app was first installed. It’s agreeing to create a new program in the very next version of Android where alternative app stores can register with Google and (theoretically) become first-class citizens that users can easily install. And it appears to be agreeing to offer “Registered App Stores” and lower fees around the world, not just in the US, lasting through June 2032 — six and a half years instead of just three.
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The details of how, when, and where Google would charge its fees are complicated, and depend on when the app was installed. The “new service fee model would apply to new installs,” Google spokesperson Dan Jackson tells The Verge, and the proposal suggests it would only apply to apps installed after October 2025.
The details also seem to be somewhat tailored to the needs of a game developer like Epic Games. Google can charge 20 percent for an in-app purchase that provides “more than a de minimis gameplay advantage,” for example, or 9 percent if the purchase does not. And while 9 percent sounds like it’s also the cap for apps and in-app subscriptions sold through Google Play, period, the proposal notes that that amount doesn’t include Google’s cut for Play Billing if you buy it through that payment system.
That cut will be 5 percent, Jackson tells The Verge, confirming that “This new proposed model introduces a new, lower fee structure for developers in the US and separates the service fee from fees for using Google Play Billing.” (For reference, Google currently charges 15 percent for subscriptions, 15 percent of the first $1M of developer revenue each year and 30 percent after that, though it also cuts special deals with some big developers.)
If you use an alternative payment system, Google might still get a cut: “the Google Play store is free to assess service fees on transactions, including when developers elect to use alternative billing mechanisms,” the proposal reads. But it sounds like that may not happen in practice: “If the user chooses to pay through an alternative billing system, the developer pays no billing fee to Google,” Jackson tells The Verge.
According to the document, Google would theoretically even be able to get its cut when you click out to an app developer’s website and pay for the app there, as long as it happens within 24 hours.
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“Starting with a version of the next major Android release through June 30, 2032, Google will modify future versions of the Android operating system so that a user can install a Registered App Store from a website by clicking on a single store install screen using neutral language. This will also grant the permission to the store to install apps,” the proposal reads.
The proposed modified injunction keeps many of Epic’s other wins in place, including ones that are already in effect today: it has to stop sharing money or perks with phonemakers, carriers, and app developers in exchange for Google Play exclusivity or preinstallation, and let developers communicate with their customers about pricing outside the Play Store.
Google and Epic say they will discuss this proposal with the judge on Thursday, November 6th.
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Source: Epic and Google agree to settle their lawsuit and change Android’s fate globally | The Verge
Of course, you have no idea what Google will charge to add an appstore. Apple’s costs are in the millions of dollars.
Robin Edgar
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