Google has been dealt a blow in its long-running legal tussle with Epic Games, the creator of popular game Fortnite. In it final ruling, US judge James Donato ordered Google to open up Android ecosystem for third-party app stores. According to multiple online reports, Google will have to stop requiring Google Play Billing for apps distributed on the Play Store. This is the ‘Google tax’ which the company charges to developers for any in-app or subscription payments.
The judge also said that Google should allow Android developers to tell users about other methods of payment within the Google Play Store. Google has also been directed to allow developers to set their own prices for apps irrespective of the Play Store billing.
Furthermore, Google cannot offer developers money or perks to launch their apps on the Play Store exclusively or deter them from launching on other app stores. Google should also not offer device makers — Samsung, Xiaomi, Oppo and others — any money or perks to preinstall Play Store on their devices.
What Epic, Google have to say
“The Epic Games Store and other app stores are coming to the Google Play Store in 2025 in the USA — without Google’s scare screens and Google’s 30% app tax — thanks to victory in Epic v Google,” Epic Games CEO Tim Sweeney said in a post on social media platform X.
Google, on the other hand, said that while these changes presumably satisfy Epic, “they will cause a range of unintended consequences that will harm American consumers, developers and device makers.”
Google is also appealing the decision in the case that started in August 2020. Epic Games had sued both Apple and Google. However, the courts were more favourable to Apple as Epic Games app remain banned from Apple’s App Store. The US Supreme Court also rejected Epic’s two appeals of forcing Apple to open the App Store to rival stores or changing its payment rules.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
