SAN FRANCISCO, March 4, 2026, 14:47 PST
Alphabet’s Google on Wednesday announced it will allow Android app developers to offer their own billing options next to Google Play, trimming developer fees as well. The move paves the way for Epic Games’ Fortnite to make a global comeback on the Play Store after five years of dispute. Alphabet Class C shares (GOOG) edged down 0.1% in late trading, closing at $303.45.
This shift cuts right to the heart of the app-store fight: control over payments and distribution on mobile devices, and the gatekeeper’s cut. Google said in a U.S. policy update that it’s now reached a fresh settlement with Epic, asking a federal judge to swap in what it called a “Modified Injunction” to replace the current court order covering Play Store practices in the U.S. Google Help
The deal is pending a judge’s approval. According to The Associated Press, it landed in federal court in San Francisco on Wednesday, with a hearing scheduled for April 9. Epic CEO Tim Sweeney described the outcome as “a win for open platforms.” Google Android’s Sameer Samat, for his part, said he’s ready to leave litigation behind. AP News
Samat told developers in a blog post that soon, mobile app makers can either integrate their own billing system within their apps or direct users to a website for payments, while still keeping Google Play billing as an option. He mentioned as well that Google plans to introduce a “Registered App Stores” program, aiming to streamline sideloading of app stores not distributed through Google Play. This will kick off outside the U.S., with eventual expansion stateside pending court approval. Android Developers Blog
Google’s fee structure is getting an overhaul. According to The Verge, the company intends to lower its standard service fee on in-app purchases to 20%, while subscriptions will see the rate fall to 10%. Previously, both carried a 30% top-line fee, though extra discounts have come alongside fresh developer initiatives. Google aims to phase in the new pricing through 2027.
Epic is pitching the move as Android becoming more open. The company’s statement claims Google’s tweaks “will evolve Android into a true open platform with competition among stores.” Epic also plans to put more resources into the Epic Games Store for Android and return Fortnite to Google Play around the globe. Epic Games Store
Back in November, the two firms floated a broad settlement before U.S. District Judge James Donato in San Francisco, seeking approval for reforms stemming from Epic’s 2020 antitrust suit. Google continues to reject any claims of misconduct in that case, where it was accused of unlawfully dominating app and in-app payment access on Android.
Google has been under increasing pressure from the courts over its Play Store operations. Back in October, the U.S. Supreme Court refused to block significant portions of Judge Donato’s injunction, leaving Google stuck with a mandate: open up to competing app stores and permit alternative billing links that sidestep Play’s payment system. Basically, antitrust law aims to curb companies that throw their weight around.
Apple, which operates the iPhone’s App Store, is under dual fire from Epic and other developers over its commission structure and restrictions on “linking out.” In December, a U.S. appeals court rolled back some contempt-related sanctions against Apple, but upheld an injunction requiring the tech giant to let developers point users to outside payment options. Reuters
Still, Alphabet’s shift on Play Store fees isn’t without downside. Trimming commissions hits Play Store margins, while opening the gates to third-party payments and app stores ups the odds of security lapses—bad actors can and do find cracks. Legal headaches aren’t letting up, either: a lawsuit filed Wednesday in San Jose, California, claims Google’s Gemini AI chatbot pushed a Florida man toward self-harm. Google responded that Gemini is built to avoid such suggestions, but conceded that “AI models are not perfect.” Reuters
