The original injunction by US District Judge Yvonne Gonzalez Rogers required Apple to let developers provide an option for external payment methods, which would allow them to avoid fees of up to 30 percent on App Store and in-app purchases. Apple introduced new App Store guidelines for developers in January that do allow linking to external websites for purchasing alternatives, but the new rules also require they get Apple’s approval to do so and impose a commission of 12-27 percent for these transactions. Per Reuters, Epic argued that this makes alternative payment options “commercially unusable.”

Epic also said at the time that Apple’s “so-called compliance is a sham,” and accused the company of violating the injunction with its recent moves. Apple maintains that it has acted in compliance with the injunction, stating in the new filing, “The purpose of the Injunction is to make information regarding alternative purchase options more readily available, not to dictate the commercial terms on which Apple provides access to its platform, tools and technologies, and userbase.”

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At the time, it was unclear what Epic actually won as the remedies had not been determined. The Fortnite maker has now submitted a proposed permanent injunction against Google detailing what it wants. In short, Epic wants the Play Store to be almost wide open.

The injunction is based on three core points, Epic noted in a blog post. First, Epic believes that Google has to let users download apps from wherever they want without it getting in the way. It says people should be able to add apps to Android devices in much the same way they can from a computer — from any app store or the web.

Epic wants to block Google from scaring people off from downloading apps from the web (though it’s okay with letting Google block malware). It also wants to stop the company from working with carriers and phone manufacturers to limit the options consumers have for downloading apps. Among other things, Epic wants restrictions on pre-installed app stores to be outlawed. So, if the injunction is approved, we might see Android phones pre-installed with a Epic Games Store app in the future.

Second, Epic argues that Google has to allow developers and users the freedom to choose how they offer and pay for in-app purchases, “free from anticompetitive fees and restrictions.” It asserts that Google has to let developers include links from their apps to websites, where they might be able to make offer discounts as they’d bypass Google’s cut of in-app payments facilitated through the Play Store.

Epic kicked off its legal battle with Google (and Apple) in 2020 by pointing out to Fortnite mobile players that they could save money by buying the V-bucks currency directly from Epic. Under the proposed injunction, Google would be prevented from trying to prevent alternative payment options through compliance programs like User Choice Billing.

The third aim of Epic’s proposed injunction is to block Google from retaliating against it (or any app or developer) for taking on app store practices. “Google has a history of malicious compliance and has attempted to circumvent legislation and regulation meant to reign in their anti-competitive control over Android devices,” Epic wrote. “Our proposed injunction seeks to block Google from repeating past bad-faith tactics and open up Android devices to competition and choice for all developers and consumers.”

The injunction has more details about Epic’s demands, including for Google to untangle its products and services (such as Android APIs) from the Play Store. For a period of six years, Epic wants Google to allow third-party app stores onto the Play Store without fees, and for them to have access to the Play Store’s library of apps. That would also mean allowing the third-party app stores to handle updates for Play Store apps. Epic wants Google to appoint a compliance committee to ensure it’s abiding by the injunction too.

We may not have to wait too long to find out just how many of Epic’s requests the court rubberstamps. Google will respond to the proposal by May 2 and a hearing on the injunction is set for May 23.

“Epic’s filing to the US Federal Court shows again that it simply wants the benefits of Google Play without having to pay for it,” a Google spokesperson told Engadget in a statement. “We’ll continue to challenge the verdict, as Android is an open mobile platform that faces fierce competition from the Apple App Store, as well as app stores on Android devices, PCs and gaming consoles.”

Google is having to make many similar changes in the European Union due to the bloc’s Digital Markets Act. However, parent company Alphabet and Apple are already under investigation over concerns that they’re not freely allowing developers to bypass the Play Store and App Store.

Meanwhile, as a result of the DMA, Epic plans to release a mobile app store on iOS and Android in the EU later this year. It’s also still battling Apple over third-party payments in the US.

Update 4/12 5:55PM ET: Added Google’s statement.

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Not only does that give Alan Wake II a bit more distance from some of the other major new games dropping around that time, it brings the survival horror title a bit closer to Halloween. In the meantime, you won't have to wait much longer to find out more about the game, which will be featured at Gamescom's Opening Night Live event next Tuesday. "We can't wait to show you what everyone's favorite novelist is up to in the Dark Place next week," the tweet states. "Thanks for your patience!"

October is an especially packed month for games. Alan Wake 2 is no longer arriving in the same week as Super Mario Bros. Wonder and Marvel's Spider-Man 2, but now it's arriving just a few days after Metal Gear Solid: Master Collection and a game that's in a similar wheelhouse in the form of Alone in the Dark.

There are many other notable games scheduled to land that month, includingDetective Pikachu Returns, Forza Motorsport, Lords of the Fallen and Cities Skylines II. Earlier this week, Ubisoft sought to carve out a small window for itself by bringing the Assassin's Creed Mirage release date forward by a week to October 5th, while Batman: Arkham Trilogy will crash onto Nintendo Switch on October 13th. Phew. I hope you're already practicing your finger stretches ahead of that glut of games.

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An Epic spokesperson clarified to Engadget that net revenue the developers and publishers receive doesn't include things like taxes and refunds. Epic covers payment processing and CDN fees, as well as other marginal payments.

The company, which says its launcher and store has 68 million monthly active users, will also give participants of the Epic First Run program extra exposure to get their wares in front of more eyes. The games and apps will receive "exclusive" badging and spots on the homepage. Epic will include them in various collections and promotions too.

The program will be open to developers and publishers who are releasing eligible products on or after October 16th. A product will be eligible if it hasn't appeared on another third-party PC store or subscription services on said storefronts. Games and apps that already have exclusivity deals with Epic aren't eligible.

Developers and publishers will still be able to sell games and apps that are included in the program directly to users via their own launchers and websites. They can also list their products on stores such as Green Man Gaming and Humble Store via the Epic Games Store’s keyless redemption program.

Epic already offered developers and publishers a more generous split of game and app sales than the likes of Valve, which takes a 30 percent cut of Steam sales. The promise of vacuuming up all net revenue for six months and getting extra promotion on the Epic Games Store might be compelling enough for more developers and publishers to take the exclusivity plunge there.

Update, August 23rd, 2023, 3:13PM ET: The story has been updated with a clarification from Epic as to what net revenue entails.

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Not everyone is pleased about the latest deal, with Epic Games CEO Tim Sweeney tweeting Epic isn’t included in the settlement. The games developer sued Google in 2020, alleging the latter had made deals with other big games publisher to box out rival app stores. Sweeney is also, as usual, grumbling about other stores asking a cut of each transaction to pay for the running costs of those stores.

Epic's trial against Google is set for November 6th, but Sweeney tweeted: "If Google is ending its payments monopoly without imposing a Google Tax on third party transactions, we'll settle and be Google's friend in their new era. But if the settlement merely pays off the other plaintiffs while leaving the Google Tax in place, we'll fight on. Consumers only benefit if antitrust enforcement not only opens up markets, but also restores price competition." The exact amount Google must pay and any necessary changes required have yet to be disclosed, but could be made public at an October 12th hearing.

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Mustard co-founded ChAIR Entertainment in 2005 with his brother Geremy Mustard, Ryan Holmes and others. The developer launched the subaqueous shooter Undertow on Xbox Live Arcade in 2007 and the Metroidvania title Shadow Complex two years later. Epic bought ChAIR Entertainment in 2008, and the studio soon unveiled Infinity Blade, a trilogy of iOS games showcasing the growing graphical prowess of Apple’s early mobile devices, using simple dodge-and-attack gameplay reminiscent of the NES classic Punch-Out!!

He was promoted to Epic’s worldwide creative director in 2016. Fortnite launched the following year and quickly became one of gaming’s biggest 21st-century success stories. The title’s Battle Royale mode transformed it into a cultural phenomenon, as it emerged on nearly every platform, including PC, consoles and mobile. Fortnite passed 350 million registered players in 2020 and remains one of the most ubiquitous games today (especially among younger players) while spawning countless copycats.

“Fortnite will never be ‘finished,’ the creative director posted on Twitter last December. “The whole idea is that it’s a living, breathing PLACE.”

Although Mustard didn’t detail his reasons for retiring now, his X post lavished praise on his years with ChAIR and Epic. “From the ambitious Advent Rising, to the start of ChAIR where we created Undertow, Shadow Complex, and the Infinity Blade trilogy, to the honor of our tiny team becoming part of Epic, each new chapter allowed me to accomplish something new and original,” he posted on X. “I am especially proud of the opportunity I’ve had to help create and shape Fortnite.”

“I am humbled to have been a part of the team that every day tries to bring ‘joy and delight’ to the Fortnite community!” Mustard continued. “We love watching you experience every moment — leaping from the Battle Bus for the very first time, seeing the rocket crack open the sky, dancing with friends after a Victory Royale, being sucked into a black hole or being washed out to sea as The Island flipped over — and on and on! I can’t wait to now share in the future of Fortnite as a player alongside all of you! The teams are in the best hands and they are working on huge, jaw dropping, amazing things!!!”

Mustard added that he plans to enjoy more domestic time for now. “I’m excited to spend time with my wife and family and am forever grateful for @TimSweeneyEpic and the Epic Games family,” the outgoing creative director wrote.

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For those impacted by the layoffs, the company says it will offer a severance package that includes six months base pay and healthcare. Epic Games is also offering to accelerate employee’s stock option vesting schedule through 2024, while giving two additional years to exercise the options. About two-thirds of the layoffs affected teams outside of core development.

Sweeney wrote that Epic had been making an effort to reduce costs by not only freezing hiring but also by cutting spending on things like marketing and events. And while the metaverse is still in a conceptual phase, Sweeney said he wants the company to focus on developing infrastructure for its games to exist in the metaverse ecosystem. For example, Epic teamed up with LEGO to build an “immersive digital experience” for kids.

Epic also said it is divesting Bandcamp, an online music platform it acquired in mid-2022; it's coordinating a sale to Songtradr, a music licensing platform. SuperAwesome, a kid-friendly developer Epic acquired back in 2020, is being broken apart and partially spun out as well. Its advertising business will become an independent company, while the Kids Web Services segment and the parent verification and consent management toolsets will remain part of Epic.

While these moves to cut spending may help Epic Games stave off pressure from investors like Tencent and Sony, its flagship game Fortnite remains banned from Apple’s App Store and Google’s Play Store, which will continue to impact its bottom line. Not to mention the $520 million dollars in penalties it has incurred from the FTC and its efforts to have the Supreme Court overturn a ruling that cleared of antitrust violations.

Still, Sweeney says Epic's "prospects for the future are strong," thanks to Fortnite and the Unreal Engine. Next week, the company will be hosting Unreal Fest, and while some products and initiatives will continue to land on schedule, Sweeney says some may fall behind due to restrictions on resources. “We’re ok with the schedule tradeoff if it means holding on to our ability to achieve our goals, get to the other side of profitability and become a leading metaverse company,” he said in the memo.

The company says it will not cut any funding for its core businesses and it will continue to invest in games with Fortnite first-party development, as well as the Fortnite creator ecosystem.

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Should Epic win its appeal, Apple could stand to lose a substantial source of revenue. The company takes a cut of all purchases made through its App Store, which can run as high as 30 percent. Epic Games has been the loudest voice protesting this cut, though other companies like Spotify and Tile are also part of the Coalition for App Fairness, which has been pressuring Apple to change its policies. Outside of the US, Epic and its peers have had more success in changing the status quo: Authorities in both South Korea and the Netherlands have ruled that Apple must allow third-party payments, though Apple is still taking a considerable cut as a “transaction fee.” Apple is also rumored to be preparing support for third-party app stores in response to the European Union’s Digital Markets Act.

Bloomberg says the Supreme Court could decide if it will take up the case before the end of the year. In the meantime, Fortnite is still not available on the App Store. It’s been absent since August 2020, when Apple banned the game after Epic added alternative payment methods to bypass the App Store cut.

Epic is also in a legal battle with Google for similar practices. Both Epic and the Match Group, which operates dating apps like Hinge and Tinder, are alleging that Google abuses its control of Android app distribution through the Play Store by establishing unfair fees and requirements for in-app purchases. That trial is supposed to kick off in the next few weeks.

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It’s the latest beat in a long-simmering feud between Cupertino and the Fortnite developer that’s seen both sides ask the Supreme Court to reverse parts of a lower court ruling. But Apple’s latest petition could have far-reaching consequences for all developers, should the Supreme Court decide to take up the case.

That’s because Apple is asking the Supreme Court to reverse an injunction that would require the company to allow app developers to offer payments that circumvent its App Store, and the fees associated with it. Such a move would be a major blow to the App Store’s business, which has used the rule to maintain strict control over in-app payments.

The rule, often referred to as an “anti-steering” policy, has long been controversial and a major gripe for developers. It not only prohibits app makers from providing links to web-based payments, it bars them from even telling their customers that a cheaper rate was available somewhere else.

Fortnite developer Epic made the issue a central part of its antitrust lawsuit against Apple in 2020, and the judge in the case ruled in Epic’s favor on the issue in 2021. Apple has spent the last two years fighting that part of the ruling.

Separately, Epic has also asked the Supreme Court to reconsider part of the lower court’s ruling in its bid to keep its antitrust claims against Apple alive.

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Sweeney sounded (understandably) determined to differentiate Epic’s price hike from Unity’s. The latter stirred the ire of countless developers as it announced a per-install pricing model that many smaller developers claimed would have put them out of business. Unity ended up walking back many of the plan’s most contentious changes. However, whether the softened stance will prevent a full-on developer exodus remains to be seen. Several months before its pricing fiasco, Unity cut its workforce for the third time in less than a year.

Epic’s CEO briefly addressed his company’s recent layoffs, where it let go of 16 percent of its workforce. “This was a survival move that was necessary,” Sweeney said. He added that Epic began running into “financial problems” about 10 weeks ago, but he sounded satisfied that the move puts Epic back on solid ground. “One thing, we stabilized our finances so we won’t run out of money as we build the metaverse,” he said. Epic has been bullish on constructing a virtual universe, including a partnership with Meta, Microsoft, and others to develop metaverse standards.

Sweeney explained that Fortnite‘s revenue had subsidized other parts of the company and that it was time for change. He claimed aspects of Epic’s business had grown too reliant on the cash cow. “A funny thing about being funded so heavily by Fortnite over the past six years is we’ve had different parts of our business get disconnected from their revenue streams. We have big teams serving different industry verticals, building this and that set of features for custom clients without revenue to support it,” he said.

The co-founder sounded as invested as ever in the Epic Games Store. “We think the Epic Games Store is a cure to a disease that’s impacting a lot of the industry right now, where the mobile platforms have become overlords and are extracting vastly higher payment processing fees than any same payment process around there,” he stated. “And we’re fighting that.” The company has taken on Apple and Google’s stranglehold on mobile payments.

Sweeney’s speech wrapped by framing the moment as a crucial turning point laced with optimism. “In summary, this is a pivotal moment for us,” he explained. “Our commitment now is to operate differently. We are determined to avoid falling back into a precarious position. Through the highs and lows, we promise to support you,” Sweeney said.

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