The US judge overseeing the Epic-Google case has cast doubt over the settlement reached between the two companies.
Last week, Epic and Google proposed a change to a US-only injunction that effectively removed all restrictions on in-game payments and third party app stores.
The two companies reached an agreement that would see Google cut its commission fee to 20% for most IAP transactions, and 9% for cosmetic-type IAPs that have little effect on gameplay, but with several large caveats. They also proposed a system through which third party app stores would be approved by Google, and then be allowed certain installation and payment privileges.
The agreement was framed by Epic and Google as a conclusion to the court battle between the two that has been rumbling on since 2020. But a report from Law360 quotes the Judge overseeing the case as saying the proposals do not go far enough to rectify Google’s behaviour. Judge Donato also wants another hearing in December or January to straighten it all out.
“My concern here is that these proposed modifications … [are] not providing an adequate remedy for Google’s wrongdoing,” said Judge Donato, according to Law360.
For a proposal like this to get through the courts successfully, there needs to be a material change in “circumstances, fact or law”, he said. And the suggested modifications to the injunction don’t change enough, said Judge Donato:
“The only changed circumstance that I can see right now is Epic and Google – two mortal enemies who pounded each other relentlessly in this courtroom for many years – are suddenly BFFs.”
Donato also seemed to suggest that Google’s appeals and suggested modifications have been designed to drag out the case so it can get “yet another year of harvesting its ill-gotten gains” from what has been ruled “predatory and anticompetitive conduct”.
Adding to the intrigue further, Epic and Google also pushed for the settlement reached last week to be sealed from the public. Judge Donato did not agree. “I don’t want to do this in the dark,” he said. “There’s too much of a public interest component.”
What Epic and Google actually proposed last week
Here’s our best attempt at decoding the court documents filed by Epic and Google last week into plain English.
Where Google takes up to 20%:
IAPs that provide a gameplay advantage, including but not limited to purchases of loot boxes, and items that impact outcomes, progress rate and player power.
Where Google takes up to 9%:
IAPs for content, levels, events, cosmetic items, subscriptions, non-game apps and premium apps and games.
Google will charge the higher rate for in-game currency that allows players to obtain both of the above categories unless a portion of the virtual currency use can be attributed and pro-rated to items with the lower service fee.
Google can also require developers to build bespoke versions of games to make them eligible to take advantage of these new terms.
Google can take up to 20% of payments processed via external web links.
Neither Epic nor Google offered any further clarifications on the above when asked. As of October 29, Google can no longer restrict the use of alternative payment systems in the US Play store, or force developers to use Google Play Billing.
