This article first appeared on GuruFocus.
After nearly five years of legal battles, Alphabet’s (NASDAQ:GOOG) Google and Fortnite creator Epic Games are finally burying the hatchet. The two companies have reached a major settlement that could change how Android apps are downloaded and paid for in the U.S.
Filed in a San Francisco federal court, the deal aims to wrap up Epic’s 2020 antitrust lawsuit, which accused Google of monopolizing app distribution and in-app purchases on Android. Epic won that case last year, when a jury sided with the gaming giant a verdict that forced Google to rethink how its Play Store operates.
Under the new agreement, Google will let users more easily download third-party app stores that meet safety standards and allow developers to point users toward alternative payment options. Google will still collect a smaller fee, capped between 9% and 20%, depending on how the transactions are processed.
If approved, the settlement would mark the end of one of Big Tech’s most-watched showdowns and open the door for a more flexible, developer-friendly app store ecosystem on Android.
