As a result of the lawsuit Epic Games filed against Google, Google is making major changes to its Play Store worldwide. Google today said it would soon lower fees and start accepting alternative payment options.
App developers will be able to offer payment options other than Google's in-app billing system in the UK, European Economic Area, and United States. Developers can use the billing system of their choice and link users to websites for purchases.
As for fees, Google will charge between 10% and 25% (not including billing fee), based on annual earnings. There's a base 10% service fee on the first $1 million in annual earnings. For earnings over $1 million, fees are 20% for new installs and 25% for existing installs (apps installed prior to the new rules) with the exception of auto-renewing subscriptions. Link-out fees are 20% for apps earning over $1 million annually.
There is an additional 5% fee for transactions that use the Google Play billing system, which is on top of the base service fees. Google's full fee structure is outlined on its website.
Google also has lower pricing options for apps that qualify for its Games Level Up and Apps Experience programs, with fees ranging from 10 percent to 20 percent. Those programs will be open to developers starting in September.
Fees and billing options go into effect on June 30 in the UK, United States, and European Economic Area. The updated fee structure will expand to Australia, Japan, and South Korea by the end of 2026, and the rest of the world by September 2027.
Google's antitrust lawsuit with Epic Games went differently than Apple's antitrust lawsuit, and Google was found to have an app store monopoly resulting in higher fees for developers. Google and Epic Games came to a settlement agreement, and Google said it would lower fees, support alternative app stores, and offer alternative payment options.
Epic Games and Apple are continuing to fight in court, with Apple appealing to the Supreme Court. Apple is currently barred from charging commissions on U.S. apps with links to purchase options on the web and it has to comply with the Digital Markets Act in the European Union, but Apple does not have one worldwide policy like Google does now.
Until fee calculations happen in the Epic Games v. Apple case, Apple is charging $0 for links in the App Store, while Google is charging between 10 and 20 percent.
It is possible that Google's Play Store changes could impact the eventual outcome of Apple's legal dispute with Epic Games. Apple and Google have historically charged developers similar fees, and though Apple is fighting App Store regulation in multiple countries, it is having to implement a disjointed set of fees and restrictions on a per-country basis to keep up with local laws.
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