Google is moving forward with a series of changes to the Play Store, settling a years-long legal battle with Fortnite maker Epic Games over anti-competitive concerns. The tech giant announced Wednesday that it will reduce Play Store fees on in-app purchases to 20%, with an additional 5% added if app developers choose to use Google’s billing system. We will also make it easier for users to install alternative app stores through a new optional program called the Registered App Stores program.
“These updates also resolve our worldwide dispute with Epic Games,” Google said in a company blog post.
The changes are part of a new settlement between the two technology rivals that will allow Epic Games to bring Fortnite back to the global Google Play Store while also investing in its own alternative app store, the Epic Games Store for Android.
As part of the deal, Google’s registered App Store program will offer a more streamlined installation flow for users who want to install apps from outside of Google Play. One of Epic’s concerns was that the process of sideloading apps would give users dire warnings about the dangers of non-Play Store apps. Of course, users should be careful. Sideloaded apps are a well-known security risk. However, some third parties, such as Epic Games, wanted to run their own legitimate (and secure) app stores without using blackmail tactics.
Google notes that the program allows this, as approved stores must meet certain quality and safety requirements. The program will initially be introduced to markets outside the United States. If the settlement is approved by the court, it will also begin in the United States.
Another notable change is the adjustment to the Play Store commission structure. Similar to Apple, Google’s default fee is 30%, with subscription fees reduced to 15%. It’s now even cheaper, with a new “service fee” of 20% for in-app purchases for new installs and 10% for subscriptions.
However, this price does not include use of Google’s own billing system, which costs an additional 5%. (This rate applies to the United States, European Economic Area) [EEA]the UK and other countries have their own market-specific rates. )
We also have new programs for developers, including the App Experience Program and the improved Google Play Game Level-Up Program, both of which encourage developers to build quality experiences on Android. Developers who choose to participate in these programs pay a 20% fee on transactions made on existing app installs, but only a 15% fee on transactions from new app installs.
These new rates will begin in the EEA, UK, and US by June 30, 2026. A new developer program will also be launched at the same time.
Australia will gain access to the new pricing structure on September 30th, and South Korea and Japan will also have it by December 31st. The new pricing structure will be expanded to global markets by September 30, 2027.
“We believe these changes will lead to a stronger Android ecosystem, more success for more developers, and high-quality apps and games available to everyone in more form factors. We look forward to continued collaboration with our developer community to build the next generation of digital experiences,” Google’s post said.
Epic Games praised the settlement and accompanying changes in a statement, saying, “These changes will evolve Android into a truly open platform that competes across stores.” Regarding X, Epic Games CEO Tim Sweeney said, “Thank you Google!” He said the move was “a better deal for all developers.”
Epic Games has been involved in similar lawsuits with Apple over App Store fees for years. Apple was forced to change its policy to allow developers to link to external payment options. The case is on appeal, and Apple recently won a judgment reversing part of the court order.
Source link
