SUMMARYGoogle is rolling out Play Store changes tied to its settlement with Epic Games, starting June 30 in Europe, the UK, and the US. The new structure splits fees into service and billing components, sets a 10 percent service fee for the first $1 million in annual earnings, and allows developers to direct users to external payment options. Google plans to expand the updated fee system globally through September 2027 while keeping control over Android distribution.
An anonymous reader quotes a report from Ars Technica: Google spent the last few years locked in a legal grudge match with Epic Games, which claimed that Google's stewardship of the Play Store was anticompetitive. Now, the companies are thick as thieves, and Google is beginning to implement app store changes as agreed in its settlement with Epic. The lower developer fees and new payment options that Google promised are rolling out in select markets this month before expanding. [...] Starting on June 30, developers in Europe, the UK, and the US will have access to the new fee structure. This system will split the commission into two components: billing and service fees.
The biggest win for small developers is the new flat 10 percent service fee for the first $1 million in earnings every year. Above that, the rate for various transaction types may reach 25 percent on existing installs. Apps installed after June 30 will top out at 20 percent. Developers will finally be allowed to send users outside the Play Store to complete a transaction, too. Google says they can design a choice screen "in accordance with our UX guidelines" to direct users to these external options. Devs pay the standard service fee on these purchases, but they'll avoid the billing fee. All transactions that run through Google's Play Store platform add a 5 percent billing fee -- even the base rate for publishers earning less than $1 million. Google notes that the billing fee is set at 5 percent in the initial markets, but it could be different in other regions. Google will expand the new fee structure globally through September 2027, while also offering reduced fees through updated developer programs.
Although the changes may let developers retain more revenue, Google will continue controlling Android distribution and collecting a share of sales as it works toward allowing certified third-party app stores to operate more like the Play Store.