When it comes to app stores, Google has recently made deep cuts to its Play Store commissions. The new default fee for in-app purchases is now only 20%, due to a recent settlement with Epic Games. This change comes as a direct response to years of battles over the platform’s controversial billing practices. It seeks to improve the Android ecosystem and create a more competitive landscape for developer-focused app stores.
The new fee structure will include a base commission of 20% on in-app purchases linked to the new app installs. Even better, for recurring subscriptions, the commission will be just 10%! For developers who opt into using Google’s billing system, they will face an extra 5% service fee on top of that. This is all meant as a way to incent developers to adopt Google’s monopolistic payment processing while still offering them a choice.
Developers in the European Economic Area (EEA), the United Kingdom, and the United States will experience these changes coming into effect by June 30, 2026. Looking to become more performance-based in your practices? Australia will be the next country to adopt the new fee structure, starting September 30. South Korea and Japan will have been integrated by December 31. The rollout is projected to continue worldwide until September 30, 2027.
Additionally, as part of this settlement Epic Games will relaunch its popular game Fortnite back into the Google Play Store internationally. The company plans to invest heavily in developing its own alternative app store. And just like on desktop, the Epic Games Store for Android will provide better options to developers and consumers.
At the time of the settlement, Epic Games released a statement celebrating the outcome of the settlement as a victory for Android. Tim Sweeney, CEO of Epic Games, stated:
“THANKS GOOGLE! Google is opening up Android all the way with robust support for competing stores, competing payments, and a better deal for all developers. So, we’ve settled all of our disputes worldwide. THANKS GOOGLE!”
This collaborative agreement seeks to better energize the broad and deep Android ecosystem. Retaining it will only continue to benefit the most successful developers, flooding the market with a wave of hit apps and games.
In a statement regarding the changes, Google expressed its commitment to enhancing the platform:
“We believe these changes will make for a stronger Android ecosystem with even more successful developers and higher-quality apps and games available across more form factors for everyone. We look forward to our continued work with the developer community to build the next generation of digital experiences.”
With these new measures in place, Google aims to evolve Android into a true open platform characterized by competition among various app stores. Developers participating in this program will still be required to pay a 20% commission on transactions generated from current app installs. In good news for them, they’ll only be subject to a 15% cut on transactions that come from new app installs. This tiered structure focuses primarily on developers located in the U.S., EEA, and U.K. At the same time, developers in other countries will benefit from special low rates tailored for their markets.
This unprecedented agreement between Google and Epic Games heralds a new era in mobile app distribution. It gives developers the maximum freedom and flexibility to innovate, keeps competition fierce, and most importantly, enables consumers to experience a rich variety of applications.
