Google Reduces Play Store Commissions to 20% After Settling with Epic Games

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Google is making significant changes to its Play Store policies after settling a long-standing legal dispute with Epic Games. The tech giant announced on Wednesday that it will reduce its Play Store commission to 20% for in-app purchases, with an additional 5% fee if developers use Google’s own billing system. The settlement also includes a new initiative called the Registered App Stores program, which simplifies the installation of alternative app stores on Android devices.

The settlement marks the resolution of Epic Games’ anticompetitive concerns and allows the popular game Fortnite to return to Google Play globally. Epic has also committed to expanding its own Android app store, the Epic Games Store, under the new framework. Google emphasized that the changes aim to create a more open and competitive ecosystem for developers and users alike.

A key feature of the update is the Registered App Stores program, which reduces the friction and scary warnings users previously encountered when sideloading apps outside of Google Play. Approved stores will need to meet quality and security standards, ensuring a safe experience while giving developers more freedom to operate alternative app marketplaces. The program will first roll out internationally before coming to the U.S. once court approval is secured.

In addition to the new app store policies, Google is revising its commission structure. The standard 30% fee for in-app purchases will drop to 20% for new app installs and 10% for recurring subscriptions. Developers using Google’s billing system will pay an extra 5%. These changes, along with new programs like the Apps Experience Program and the revamped Google Play Games Level Up program, aim to reward developers who deliver high-quality apps and games on Android.

The updated fees and developer programs will go live in the U.S., U.K., and European Economic Area by June 30, 2026, with Australia following in September and Asia, including Korea and Japan, by the end of the year. Epic Games praised the settlement, calling it a milestone for Android as a more open platform. CEO Tim Sweeney celebrated the move on X, saying it offers a “better deal for all developers” and opens the door to a more competitive Android ecosystem.

source: Techcrunch 

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