Apple and Google are facing intense legal pressure to modify their mobile ecosystems following ongoing disputes with Epic Games. In the United States, the tech giants are navigating court-mandated changes to app distribution and commission structures.
Apple's 5% to 10% fee restructuring attempt
Apple has proposed a new tiered commission structure to address the ongoing dispute with Epic Games. According to the report, the company wants to lower standard commissions to 10% for specific categories, including the Video Partner, News Partner, and Mini Apps programs. Additionally, Apple is proposing a 5% rate for its small business line of apps.
This move comes as Apple seeks supervised mediation in a California federal court after previous settlement talks with Epic Games failed. However, Epic Games remains skeptical,arguing that these proposed fees do not align with the requirements set by the Ninth Circuit. Epic has indicated it will oppose the proposal within the next sixty days by mobilizing expert testimony.
The fight over Aptoide and generic search results
Google is facing scrutiny regarding how it presents competing app stores to users within the Google Play Store. During a recent hearing, legal representatives for Epic Games argued that Google's current implementation makes it difficult for users to find rival platforms. For instance, searching for generic terms like "store for apps" fails to surface competitors, and even searching for specific brands like Aptoide results in promotional banners rather than direct app links.
The report notes that Google's platform currently necessitates a view-button click before offering an install option for third-party stores. This friction is a central point of contenttion in the effort to ensure that competing stores are both discoverable and easily installable for users in the United States.
Judge Donato’s one-week ultimatum for Google Play
Judge James Donato has imposed an aggressive one-week deadline for Google to implement changes to its app distribution model. The court is demanding that Google make competing app stores more accessible to prevent the platform from unfairly favoring its own ecosystem. Failure to meet this deadline could prompt further legal action against the tech giant.
In response to these judicial requirements, Google is reportedly planning multiple modifications to the Play Store . These changes are intended to allow rival stores to be distributed directly through the Google platform, a move that could fundamentally reshape how consumers encounter third-party applications.
Will Epic Games' expert testimony change the mediation outcome?
While Apple has requested supervised mediaion to resolve its standoff with Epic Games, several critical questions remain unanswered. It is currently unclear whether Epic Games will accept the new 5% and 10% fee proposals or if they will proceed with their plan to mobilize expert testimony within the next sixty days. Furthermore, the report does not specify how Google intends to modify its search algorithms to satisfy the court's demand for better discoverability without undermining its own ecosystem.
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