Google lowers commissions and opens up the Android market
Google has announced a reduction in Play Store commissions and the introduction of alternative payment methods and third-party app stores for Android, following an antitrust case with Epic Games. The new rules will first take effect in the US, the UK, and Europe.
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Google has announced a reduction in Play Store commissions and the introduction of alternative payment methods and third-party app stores for Android, following an antitrust case with Epic Games.
Changes to Play Store Commissions
Google is moving away from its previous commission model of up to 30%. Now, most commissions will range from 10% to 20%, depending on the type of purchase and the chosen payment method. These changes are tied to a proposed settlement with Epic Games, which still requires court approval.
The Play Console help pages have already published new commission tiers for developers whose apps redirect users to external payment methods or contain external links to content. For the External Payments program, the commission for relevant external transactions will be 10% for auto-renewing subscriptions and 20% for other digital content within the app. The 10% rate applies to transactions within the first $1 million of a developer’s annual revenue, provided they meet the established requirements.
The External Content Links program follows a similar structure: 10% for subscriptions and 20% for other content (with a reduced 10% rate on the first $1 million for eligible developers). Additionally, a new “app install event” fee is being introduced—$2.85 per app installation and $3.65 per game installation within 24 hours of clicking a link.
Opening Android to Alternative Payments and Stores
In addition to lowering commissions, a significant structural change is the expansion of Android’s capabilities for payments and app distribution. Google’s developer documentation and policies now allow sales through Google Play Billing or approved alternative payment systems, within established guidelines.
Google plans to implement the Registered App Stores approach, which will simplify the installation of competing Android app stores from the internet and expand opportunities for developers to use their own payment systems.
Implementation Timeline
The rollout of the new rules will begin in the US, UK, and Europe. Broader global changes will be implemented later, depending on the program and the final court decision.
