Google proposes app store reforms in settlement with 'Fortnite' maker Epic Games

Alphabet's Google said on Tuesday it has reached a comprehensive US court settlement with "Fortnite" video game maker Epic Games, agreeing to Android and app store reforms aimed at lowering fees, boosting competition and expanding choices for developers and consumers.

In a joint filing in the federal court in San Francisco, the companies asked US District Judge James Donato to consider a proposal resolving Epic's 2020 antitrust lawsuit, which accused Google of illegally monopolizing how users access apps and make in-app purchases on Android devices.

Google has denied any wrongdoing throughout the closely watched litigation.

The proposal requires Donato's approval. The judge oversaw a jury trial in 2023 that Epic won, and last year he issued a sweeping injunction mandating Play app store reforms that Google said went too far. Google said the reforms potentially harmed its competitive position and compromised user safety.

Under the new proposal, Google would allow users to more easily download and install third-party app stores that meet new security and safety standards.

Developers will also be allowed to direct users to alternative payment methods both within apps and via external web links. Google said it would implement a capped service fee of either 9 percent or 20 percent on transactions in Play-distributed apps that use alternative payment options.

Sameer Samat, Google's president of Android Ecosystem, said on Tuesday the proposed changes maintained user safety while increasing flexibility for developers and consumers. Samat said Google looked forward to discussing the resolution with Donato, who is expected on Thursday to meet with lawyers involved with the case at a previously scheduled hearing.

Epic Games CEO Tim Sweeney called Google's proposal "awesome" and said it "genuinely doubles down on Android's original vision as an open platform."