Google implements reduced Play Store fees following Epic Games settlement
The tech giant begins honouring its settlement agreement with Epic Games, introducing a 10 per cent service fee for smaller developers and allowing alternative billing channels in Europe, the UK, and the US.
Google has commenced the implementation of reduced developer fees on the Google Play Store in Europe, the UK, and the US, effective 30 June 2026. This operational shift is a direct consequence of the settlement agreement with Epic Games, which resolves a protracted antitrust dispute regarding app store practices. The revised fee model introduces a tiered structure: a 10 per cent service fee applies to the first $1 million in annual earnings, alongside a 5 per cent billing fee on all transactions.
Crucially, developers are now permitted to direct users to external payment options, thereby avoiding the 5 per cent billing fee, provided they adhere to Google’s user experience guidelines. For developers earning less than $1 million annually, the service fee is a flat 10 per cent. For earnings above $1 million, transaction rates may reach 25 per cent for existing installs, while apps installed after 30 June 2026 will have a cap of 20 per cent.
Australia is scheduled to adopt this new framework on 30 September 2026, with Japan and Korea following on 31 December 2026. A comprehensive global rollout of the new system is projected for 30 September 2027. Concurrently, Google is introducing incentive programs such as 'Games Level Up' and 'Apps Experience' to offer fee breaks in exchange for enhanced integration with Google Play features.
These incentive programs will be available in Europe, the UK, Australia, and the US on 30 September 2026. The 'Games Level Up' program, which already exists, will offer increased visibility and lower transaction fees in exchange for implementing more Google Play features. The new 'Apps Experience' program will offer a similar deal for non-game content.
Google must also certify third-party app stores and allow them to operate more like the Play Store, though this phase is not detailed in the current announcement. The company is also beginning to enforce developer verification measures over the coming months, signalling a continued tightening of control over the Android ecosystem despite the regulatory concessions.
