As a result of Epic Games' lawsuit against Google, the company is making significant changes to its Play Store worldwide. Google has announced that it will soon reduce fees and begin accepting alternative payment options.
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App developers will be able to offer payment options beyond Google's in-app billing system in the United Kingdom, the European Economic Area, and the United States. Developers can use the billing system of their choice and connect users to websites for purchases.
As for fees, Google will charge between 10% and 25%, based on annual revenue. There is a basic service fee of 10% for the first million dollars in annual revenue. For revenue over one million dollars, the fees are 20% for new installations and 25% for existing installations (apps installed before the new rules), excluding automatic subscription renewals.
The connection fees are 20% for apps that earn over a million dollars annually.
There is an additional 5% fee for transactions using the Google Play billing system , which is added to the basic service charges. Google's full fee structure is described on its website.
Google also has lower pricing options for apps that qualify for its Games Level Up and Apps Experience, with rates ranging from 10% to 20%. These programs will be open to developers starting in September.
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The fees and billing options will go into effect on June 30 in the United Kingdom, United States, and European Economic Area. The updated pricing structure will expand to Australia, Japan, and South Korea by the end of 2026, and to the rest of the world by September 2027.
Google's antitrust lawsuit with Epic Games had a different outcome than Apple's, with Google found to have a monopoly on the app store, resulting in higher fees for developers. Google and Epic Games reached a settlement, with Google saying it would lower fees, support alternative app stores, and offer alternative payment options.
Epic Games and Apple continue to battle in court, with Apple appealing to the Supreme Court. Apple is currently prohibited from charging fees in apps in the US with links to online purchase options and must comply with the Digital Markets Act in the European Union, but Apple doesn't have a global policy like Google now does.
Until the fee calculations in the Epic Games v. Apple case are made, Apple charges $0 for links in the App Store, while Google charges between 10% and 20%.
See also: 2024: Google banned 2.3 million dangerous apps from the Play Store
It's possible that Google's Play Store changes could affect the final outcome of Apple's legal battle with Epic Games. Apple and Google have historically charged similar fees to developers, and although Apple has fought against App Store regulation in many countries, it has to implement a disjointed set of fees and restrictions per country to keep up with local laws.
