Google has reached a settlement with Epic Games, agreeing to reduce its Play Store commissions on in-app purchases to 20% and allow alternative app stores, concluding a multi-year legal dispute over alleged anticompetitive practices.
This settlement not only resolves the legal dispute but also paves the way for Epic Games’ Fortnite to return to the Google Play Store globally and enables Epic to expand its own Android app store.
Google stated on Wednesday that its Play Store commissions for in-app purchases will be set at 20%, with an additional 5% commission if developers choose to use Google’s billing system.
As part of the settlement, Google is introducing a Registered App Stores program designed to simplify the installation of third-party app stores, thereby promoting a more open and competitive Android ecosystem.
The Registered App Stores program will require approved stores to meet specific quality and safety standards. It is set to launch first in markets outside the U.S. and will become available in the U.S. once the settlement receives court approval.
Historically, Google’s default commission matched Apple’s at 30%, with a reduced fee of 15% for recurring subscriptions. Under the new structure, the “service fee” will be 20% for new app installs and 10% for recurring subscriptions.
This new fee structure will apply in the U.S., European Economic Area (EEA), and the U.K., while other countries will be subject to market-specific rates.
In addition to the fee changes, Google is launching new developer programs, including an Apps Experience Program and a revamped Google Play Games Level Up program, aimed at incentivizing the development of high-quality Android apps.
Developers participating in these programs will be required to pay a 20% commission on transactions within existing app installs and a 15% commission on transactions from new installs.
The implementation timeline for these new fees and developer programs varies by region, with the EEA, U.K., and U.S. set to adopt the changes by June 30, 2026. Australia will follow on September 30, with Korea and Japan implementing the changes by December 31. Globally, the new structure is slated to be in place by September 30, 2027.
Google expressed its belief that these changes will strengthen the Android ecosystem, leading to more successful developers and higher-quality apps and games across various form factors.
Epic Games welcomed the settlement, stating that the changes will evolve Android into a true open platform with competition among stores. Epic Games CEO Tim Sweeney praised the move on X, saying “THANKS GOOGLE!” and describing it as “a better deal for all developers.”
It’s worth noting that Epic Games has an ongoing legal dispute with Apple regarding App Store commissions. Apple was previously mandated to allow developers to link to external payment options, and this case is currently under appeal.
