Google cuts Play Store commission to 20% after settlement with Epic Games

Google is moving ahead with a range of Play Store changes after resolving its long-running legal fight with Fortnite creator Epic Games over allegations of anticompetitive behaviour. On Wednesday, the company said it will reduce its Play Store commission to 20% on in-app purchases, with an additional 5% if developers use Google’s billing system. Google is also introducing a new optional initiative, the Registered App Stores program, intended to make it easier for users to install alternative app stores.

“With these updates, we have also resolved our disputes worldwide with Epic Games,” Google said in a company blog post.

The changes are part of a new settlement between the two companies that will pave the way for Epic Games to return Fortnite to the Google Play Store globally, while also supporting Epic’s continued investment in its own alternative marketplace, the Epic Games Store for Android.

As part of the agreement, Google’s Registered App Stores program will provide a smoother installation process for users who want to install apps from outside Google Play. One of Epic’s long-standing complaints was that sideloading apps on Android triggered alarming warnings that discouraged users by emphasising the risks of apps not available on the Play Store. While users need to be cautious, since sideloaded apps are widely considered a security risk, some outside companies, such as Epic Games, have argued that they should be able to operate legitimate, secure third-party app stores without relying on scare tactics.

Google said the new program will make that possible, though participating stores will need to satisfy certain safety and quality standards. The company noted that the program will launch in markets outside the United States first. Once the settlement receives court approval, it will also become available in the U.S.

Another major part of the change involves Google’s Play Store commission structure. Similar to Apple, Google has historically charged a default commission of 30%, with a reduced rate of 15% for recurring subscriptions. Under the updated structure, those fees will be lower. Google said the new “service fee” will be 20% for in-app purchases tied to new installs and 10% for recurring subscriptions.

That fee, however, does not include use of Google’s own billing system, which carries an additional 5% charge. Google said that the specific rate will apply in the United States, the European Economic Area, and the United Kingdom. Other countries will have their own region-specific pricing.

Google is also introducing new developer-focused initiatives, including an Apps Experience Program and a revamped Google Play Games Level Up program. Both are designed to encourage developers to build higher-quality Android apps and games. Developers who choose to participate in these programs will pay the 20% commission on transactions from their existing app installs, but only a 15% commission on transactions generated through new app installs.

The updated fees are scheduled to take effect by June 30, 2026, in the U.S., U.K., and EEA. Google said the new developer programs will launch at the same time.

Australia will receive access to the revised fee structure on September 30, followed by Korea and Japan by December 31. The new pricing model will expand worldwide by September 30, 2027.

“We believe these changes will make for a stronger Android ecosystem with even more successful developers and higher-quality apps and games available across more form factors for everyone. We look forward to our continued work with the developer community to build the next generation of digital experiences,” Google said in its post.

Epic Games welcomed the settlement and the resulting changes in a statement of its own, saying that “These changes will evolve Android into a true open platform with competition among stores.” On X, Epic Games CEO Tim Sweeney wrote, “THANKS GOOGLE!” and described the agreement as a “better deal for all developers.”

Epic Games has also been involved in a separate and similarly high-profile legal battle with Apple over App Store commissions. Apple was ultimately required to revise its rules to allow developers to link users to outside payment methods. That case is still under appeal, and Apple most recently secured a partial reversal of the court’s earlier order.