Key facts
- Google is lowering its Play Store developer fees as part of a settlement with Epic Games.
- New fee structure begins June 30 for developers in Europe, the UK, and the US.
- A 10% service fee will apply to the first $1 million in annual developer earnings.
- Developers can now direct users to external payment options, avoiding Google's 5% billing fee.
- Global rollout of the new fee structure is planned by September 30, 2027.
Google is beginning to implement changes to its Play Store developer fees, fulfilling terms of a settlement reached with Epic Games. The legal battle centered on Epic's claims that Google's app store policies were anticompetitive, particularly regarding its commission structure and restrictions on external payment options.
Starting June 30, developers in Europe, the UK, and the US will experience a new fee structure. This system divides commissions into billing and service fees. A significant change is a new flat 10 percent service fee for the first $1 million in annual earnings for developers. Transactions above this threshold may see rates up to 25 percent on existing installs, while apps installed after June 30 will be capped at 20 percent.
Furthermore, developers will now be permitted to direct users to complete transactions outside the Play Store, a practice that previously led to Epic's Fortnite being removed from the store. While developers will still pay a standard service fee on these external purchases, they will avoid Google's 5 percent billing fee.
The settlement mandates a phased global rollout of these changes. Australia will adopt the new fee structure on September 30, followed by Japan and Korea on December 31. All other regions are scheduled to transition by September 30, 2027. Google is also enhancing its Games Level Up and introducing an Apps Experience program, which will offer additional fee reductions and increased visibility for developers.
Despite these adjustments, Google retains significant control over the Android ecosystem and continues to take a commission on sales. The settlement also requires Google to certify and allow third-party app stores to operate more freely, a process that is expected to take longer to implement.