After years of intense legal scrutiny, Google has proposed sweeping changes to its Play Store policies following a court ruling that labelled its setup an illegal monopoly. The revisions were filed Wednesday in a federal court in San Francisco, marking a major turning point in the antitrust case that began in August 2020 when Epic Games sued Google over the dominance of its Play Store payment system.
Under the proposal, Play Store commissions on subscriptions and e-commerce transactions will drop from the existing 15 per cent to 30 per cent range to between 10 per cent and 20 per cent. Google will also introduce a new 5 per cent payment processing fee option. Developers will continue to have the freedom to use third-party payment systems instead of Google’s own service.
The company also plans to create a certification pathway for alternative app stores. While certification will not be mandatory, registered rival app stores will be less likely to trigger security warnings for users. Consumers will be allowed to download apps from these certified alternative stores.
The changes come 5 months after the Supreme Court of the United States declined to hear Google’s appeal against a lower court ruling. In 2023, a jury found that Google’s Play Store operated as an illegal monopoly. In October 2024, James Donato ordered major reforms. He must now approve Google’s latest proposal. A hearing has been requested for April 9.
Tim Sweeney welcomed the move. “Epic has been advocating for open platforms for a long time, and this really brings Android up to the status of a truly open platform,” he told a news agency. Google’s Android chief Sameer Samat said, “We think it’s really great to focus more energy and time on building than on quarrelling.”
Google plans a global rollout, starting with the United States, the United Kingdom, and the European Union, subject to regulatory approvals.
The lower fees could impact Alphabet Inc., valued at USD 3.7 trillion, nearly 4 times higher than in 2020. Meanwhile, Google faces separate monopoly rulings related to search and digital advertising. Epic’s similar case against Apple Inc. continues, though a judge ruled Apple’s app store is not a monopoly.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
