After resolving a protracted legal dispute over anticompetitive issues with Fortnite creator Epic Games, Google is moving forward with a number of Play Store modifications. The internet giant announced on Wednesday that it will reduce its Play Store fees to 20% on in-app purchases. If app developers decide to use Google’s payment system, an additional 5% will be added. Additionally, a new optional program called the Registered App Stores program is making it simpler for consumers to install alternative app stores.
This is a move in which Google and Epic Games struck earlier today on a global settlement that will change Google’s Play Store commission system and end their long-running antitrust lawsuit.
In a blog post, Google stated, “With these updates, we have also resolved our disputes worldwide with Epic Games.”
The modifications are a part of a new agreement between the two tech companies that will enable Epic Games to invest in its own alternative app store, the Epic Games Store for Android, and bring Fortnite back to the Google Play Store worldwide.
As part of the deal, consumers who choose to install apps from sources other than Google Play will have a more efficient installation process thanks to Google’s Registered App Stores program. One of Epic’s worries was that users were shown frightening alerts about the risks associated with non-Play Store apps throughout the sideloading process. Sideloaded apps are a known security issue; thus, users should naturally exercise caution. However, several third parties, such as Epic Games, desired to operate their own trustworthy (and safe) app shops free of the fear tactics.
This will be made possible by that program because, according to Google, authorised stores must adhere to specific safety and quality standards. First, the program will be available in markets outside of the United States. It will also launch domestically after the court approves the settlement.
The modification to the Play Store commission system is another noteworthy development. Similar to Apple, Google has a 30% baseline commission with a 15% discount for recurring subscriptions. The new “service fee” will now be even lower, at 10% for recurring subscriptions and 20% for in-app purchases on new installs.
The usage of Google’s own billing system is an additional 5% and is not included in this charge. (This rate is applicable in the United States, the United Kingdom, and the European Economic Area [EEA]. Rates in other nations will vary depending on the market. Fees for certain transactions, including non-essential game cosmetics, might be as low as 9%.
Additionally, there will be new initiatives for developers, such as the redesigned Google Play Games Level Up program and the Apps Experience Program, which encourage developers to create high-quality Android experiences. Developers that want to take part in these programs will only pay a 15% fee on transactions from new app installations, but they will pay a 20% commission on transactions occurring in their current app installs.
The EEA, the UK, and the US will implement these new fees by June 30, 2026. At that time, the new developer programs will also be introduced.
On September 30, Australia will have access to the revised price schedule; Korea and Japan will follow by December 31. By September 30, 2027, the new fees will be available on a worldwide scale.
“We think these adjustments will strengthen the Android ecosystem with even more prosperous developers and better apps and games accessible on a wider range of devices for all users. According to Google’s article, “We look forward to our continued work with the developer community to build the next generation of digital experiences.”
In a statement, Epic Games commended the settlement and the ensuing modifications, stating that “These changes will evolve Android into a true open platform with competition among stores.” Tim Sweeney, CEO of Epic Games, exclaimed, “THANKS GOOGLE!” on X, describing the change as a “better deal for all developers.”
Due to Apple’s App Store commissions, Epic Games has been embroiled in a similar dispute for a considerable amount of time. In order to allow developers to link to external payment sources, Apple had to modify its rules. Apple most recently won a partial reversal of the court’s order in that case, which is currently on appeal.