Google lowers Play Store fees under Epic settlement

Google is beginning to change Play Store billing rules under its settlement with Epic Games, giving developers in several major markets lower fees and more ways to take payments. The shift matters for app makers because Google will reduce some commissions and allow users to be sent outside the Play Store to finish purchases.

Ars Technica reported that the new fee structure starts June 30 for developers in Europe, the United Kingdom and the United States. The changes follow years of litigation between Google and Epic over whether Google’s control of Android app distribution and billing harmed competition.

For years, Google charged many Play Store developers a 30 percent commission on transactions, according to Ars Technica. Developers also could not steer users to cheaper payment options outside Google’s store, a rule Epic challenged in 2020 when it added external billing to Fortnite on Android and iOS.

That move led Google and Apple to remove Fortnite from their stores and prompted Epic’s lawsuits. Ars Technica reported that Apple largely prevailed in its case, while Google lost after a jury found its Android app store monopoly violated antitrust law.

A judge had been preparing remedies that included requiring Google to carry third-party app stores inside Google Play, Ars Technica reported. Google’s settlement with Epic does not immediately go that far, though Google has said the agreement will resolve the dispute worldwide.

How the new fees work

Google’s revised structure separates Play Store charges into service fees and billing fees, according to Ars Technica. The most direct reduction for smaller developers is a 10 percent service fee on the first $1 million in annual earnings.

After that threshold, fees vary by transaction type. Ars Technica reported that some transactions on existing installs can reach 25 percent, while apps installed after June 30 will face a maximum rate of 20 percent.

Developers will also be allowed to direct users outside Google Play for purchases. Google says developers can create a choice screen that follows its user-experience guidelines, according to Ars Technica.

Those outside transactions still carry the standard service fee, but developers avoid Google’s billing fee. Purchases handled through Google Play add a 5 percent billing fee in the initial markets, including for developers below the $1 million earnings level, according to Google as cited by Ars Technica. Google also said that billing fee could differ in other regions.

Rollout schedule and next steps

The first markets move on June 30 because that date was included in the settlement, Ars Technica reported. Australia is scheduled to join the new structure on September 30, followed by Japan and Korea on December 31. Other regions are set to move to the system on September 30, 2027.

Google is also changing two programs that can give developers lower fees. Ars Technica reported that Games Level Up already offers game developers more Play Store visibility for adding more Google Play features, and will add a lower transaction fee. A new Apps Experience program will offer a similar arrangement for non-game apps.

Those programs will be available in Europe, the U.K., Australia and the U.S. on September 30, according to Ars Technica. They will expand to other countries as those markets enter the new billing system.

More settlement terms remain ahead. Ars Technica reported that Google must also certify third-party app stores and let them operate more like Google Play on devices, a step that could take longer as Google separately rolls out developer verification requirements.

This story draws on original reporting from Ars Technica.