Google and Epic Reach Global Agreement to Introduce Third-Party App Stores on Android

In a significant development, Google and Epic Games have reached a settlement that could potentially resolve their long-standing dispute and pave the way for the introduction of third-party app stores on the Android platform globally. This agreement follows a US court ruling in October 2024, which mandated that Google allow the distribution of third-party app stores via Google Play, and a subsequent ruling that permitted the use of alternative payment systems. However, these judgments were limited to the United States. The new deal, outlined in a joint motion filed by Google and Epic, proposes the introduction of third-party app stores on Android worldwide and suggests a reduction in Google's traditional 30% commission to either 9% or 20%, depending on the type of transaction, for payments made through Play-distributed apps using alternative payment options. The revised service fees will apply to new installs, defined as apps first installed or updated from Google Play on or after October 30, 2025. The 20% commission cap will apply to scenarios such as loot boxes and purchases that provide a significant gameplay advantage, while the 9% cap will apply to purchases that do not provide a significant advantage, such as cosmetic items, as well as in-app subscriptions and purchases in non-game apps. The proposal is subject to US court approval, with the next hearing scheduled for November 6. If accepted, the agreement will be in effect until 2032 and will apply globally. Epic CEO Tim Sweeney has hailed the deal as a breakthrough, stating that it doubles down on Android's original vision as an open platform, streamlines competing store installs globally, reduces service fees for developers on Google Play, and enables third-party in-app and web payments. Android president Sameer Samat has also welcomed the proposed changes, emphasizing the focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition while keeping users safe. The deal is likely to accelerate efforts by several companies to launch alternative app stores and third-party payment systems, with Epic Games having recently unveiled its Epic Web Shops service. Industry experts, including Chris Hewish, president of Xsolla, and Gil Tov-Ly, CMO of Appcharge, have welcomed the proposed deal, citing the potential benefits for developers and users, including greater choice, flexibility, and competitive pricing.