Google and Epic Abandon Settlement, Clearing the Way for Rival Android App Stores

Google and Epic Games this week withdrew their joint settlement agreement after it became clear the court was unlikely to allow it.

With the settlement out, Google is bound by a permanent injunction issued in October 2024 requiring it to allow alternative app stores on Android devices. In a court filing [PDF], Google said that it plans to begin supporting alternative app stores on July 22. In a statement to The Verge, Google said it decided to withdraw the motion to avoid a prolonged legal fight.

We've agreed with Epic to withdraw our motion to modify the US Court's injunction rather than prolonging this process which creates uncertainty for the ecosystem. This allows us to focus on executing our recently announced global business model evolution to deliver greater app store choice, lower prices, and more opportunities for developers and users. We remain committed to maintaining Android's industry-leading security and fostering a competitive ecosystem where every app store and developer has the freedom to compete. In parallel, we continue to comply with the US Court's injunction.

‌Epic Games‌ sued Google at the same time that it sued Apple, but the cases had different judges and different outcomes. The lawsuit largely went in Apple's favor, but ‌Epic Games‌ came out ahead in the Google case after a jury found Google abused its power by operating an app store monopoly and charging developers fees that were too high.

Google went through an appeals process before reaching an agreement with ‌Epic Games‌ in an attempt to avoid the permanent injunction, but now it will need to comply. Back in March, Google said it would launch a worldwide Registered App Store program for sideloading later in the year, but in the U.S., alternative app stores will be an option on Android starting next week.

Third-party U.S. app stores will be able to distribute the Google Play catalog of apps, and Google has published a guide on the process. The app stores will be available through the Google Play Store, and Google will charge alternative marketplaces a $5,000 annual access fee. Apps downloaded through alternative stores will still use the Google Play system, and Google will collect its service fee on those transactions.

Google's agreement to lower fees for apps and accept alternative payment options is separate from the injunction requiring it to support third-party marketplaces in the Play Store. Google is still cutting its fees and supporting alternative payment methods.

The injunction forcing Google to support third-party app stores doesn't have a direct impact on Apple, but it is a legal outcome Apple has been fighting worldwide. The European Union's Digital Markets Act requires Apple to support alternative app marketplaces and app sideloading in the EU, and Apple has repeatedly said the requirement weakens user privacy and protections. Google adding support for third-party app stores through the Android Play Store could eventually impact Apple's own Epic fight or future regulatory changes.

Though Apple largely won its legal fight against ‌Epic Games‌, the case is ongoing. Apple was ordered to allow link-outs and alternative payment options in the U.S. in 2021, and compliance problems later led to a contempt ruling. Apple has now appealed to the Supreme Court, and the court will hear Apple's argument in late 2026 or early 2027.