Epic Games and Google Reach Historic Settlement in Long-Running Legal Battle

After more than five years of litigation, the landmark case between Epic Games and Google seems to be approaching an unexpected conclusion. Both companies have submitted a settlement agreement to U.S. District Judge James Donato, seeking to modify his earlier ruling that required Google to fundamentally open Android in the United States. The new settlement would replace the nationwide injunction with a global commitment to reform the platform instead.
Under the proposed terms, Google has agreed to lower its App Store fees worldwide:
- 9% for in-game cosmetic items or general apps
- 20% for items that provide gameplay advantages
Additionally, Google will implement a Registered App Stores program, allowing competing stores like the Epic Games Store to install on Android with a single click, bypassing the previously intimidating “Scare Screens.”
Courtroom Reactions
During the January 22, 2026, hearing, Judge Donato expressed skepticism over the sudden reconciliation between the two rivals. He sarcastically noted, “From bitter enemies in court for years, they suddenly become best friends (BFFs).” The judge emphasized concerns that the settlement might benefit the corporations more than addressing the monopoly damages previously determined by the jury.
If the settlement fails, Google has indicated a potential alternative: a per-download fee structure, which could disproportionately affect smaller app developers. To demonstrate goodwill, Epic has promptly returned Fortnite to the Google Play Store, signaling a genuine effort to end the conflict.

Global Implications
The outcome of this case could set a new standard for digital platform business practices worldwide. If approved, Android would become a more open ecosystem globally until at least 2032. If rejected, Google could face stricter court orders or implement countermeasures that complicate matters for developers.
The world now waits to see whether Judge Donato will approve the settlement or push for stricter terms, which could redefine how app stores operate for years to come.
Source: The Verge





