Google Slashes App Store Fees After Legal Battle

Google has begun implementing changes to its Play Store policies as part of a settlement with Epic Games, which challenged the platform's alleged anticompetitive practices. These updates include reduced developer fees and expanded payment options, rolling out initially in Europe, the UK, and the US on June 30, 2026.

The new fee structure splits commissions into billing and service fees. A key benefit for smaller developers is a flat 10 percent service fee on the first $1 million in annual earnings. Transaction fees for new installs will not exceed 20 percent, while existing installs may reach up to 25 percent. Developers are now permitted to offer users a choice screen to direct them to external payment options, thereby avoiding the 5 percent billing fee charged on Play Store transactions.

These changes are set to become global, with Australia adopting the new structure on September 30, 2026, and Japan and Korea on December 31, 2026. Other regions will transition by September 30, 2027. Google is also introducing programs like 'Games Level Up' and 'Apps Experience' to offer further fee reductions and enhanced visibility for developers.

Further terms of the settlement require Google to certify and permit third-party app stores to operate similarly to the Play Store on devices. Google is also enforcing developer verification in the coming months, indicating continued evolution of the Android ecosystem.