Google struck a settlement agreement with Epic Games, which includes a set of changes to Android and Google Play.
- The companies said the agreement terms will provide significant benefits to Android users and developers by promoting competition on the Android platform.
- Google and Epic Games now await U.S. District Court Judge James Donato’s approval to implement the settlement agreement.
- Google’s Android head said that, if approved, this would resolve our litigation.
Alphabet Inc.’s (GOOGL) (GOOG) has clinched a comprehensive settlement deal with Epic Games in the antitrust lawsuit the Fortnite maker had filed in 2020, which alleged that Google illegally monopolized how users access apps and make in-app purchases on Android devices.
Alphabet’s Class A stock traded nearly flat with a slight negative bias in overnight trading, recovering from the 2%+ drop on Tuesday amid the broader tech-led sell-off.
Google’s Epic Tiff In Rearview?
In a joint filing by Google and Epic Games in the U.S. District Court for the Northern District of California, the companies stated that the agreement terms will provide significant benefits to Android users and developers by promoting competition on the Android platform. Many key provisions of the agreement will remain in effect through 2032.
Among the provisions of the agreement are:
– Promotion of Android app store competition across Android by introducing a greatly simplified flow for the installation from the web of Registered App Stores.
– Google allowing developers to offer alternative payment options, including through links to payment websites
– Provide developers with the immediate benefit of a reduction to Google’s service fees
Google and Epic Games now await U.S. District Court Judge James Donato’s approval to implement the settlement agreement.
On Stocktwits, retail sentiment toward GOOGL stock remained ‘extremely bullish’ as of early Wednesday, and the message volume on the stream was ‘extremely high.’
Google, Sweeney Excited About Proposed Settlement
Commenting on the proposal, President of Android Ecosystem, Sameer Samat, said, “Exciting news! Together with Epic Games, we have filed a proposed set of changes to Android and Google Play that focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition, all while keeping users safe.”
“If approved, this would resolve our litigations. We look forward to discussing further with the Judge on Thursday.”
Epic Games’ Tom Sweeney called the agreement a “comprehensive solution, which stands in contrast to Apple’s model of blocking all competing stores and leaving payments as the only vector for competition. The public filings are live.”
“It genuinely doubles down on Android’s original vision as an open platform to streamline competing store installs globally, reduce service fees for developers on Google Play, and enable third-party in-app and web payments.”
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