Google settles with Epic Games, drops its Play Store commissions to 20%

In a significant development following a prolonged legal dispute, Google has announced major changes to its Play Store policies after settling with Epic Games, the creator of Fortnite. The tech giant revealed that it will reduce its commission on in-app purchases to 20%, with an additional 5% charge if developers opt to utilize Google’s billing system. As part of this agreement, Google is also launching a new initiative called the Registered App Stores program, aimed at simplifying the installation of alternative app stores. This move addresses concerns raised by Epic Games regarding the intimidating warnings associated with sideloading apps from non-Play Store sources. While users are advised to be cautious of sideloaded applications due to potential security risks, this new program will allow approved third-party stores to operate without such warnings, provided they meet Google's quality and safety standards. The settlement paves the way for Epic Games to reintroduce Fortnite to the Google Play Store globally and invest in its alternative app platform, the Epic Games Store for Android. The Registered App Stores program will first launch in international markets, with plans to expand to the U.S. following court approval. Another critical change involves the commission structure for the Play Store, which previously stood at 30%. Under the new terms, the default service fee for in-app purchases will be reduced to 20%, while recurring subscriptions will incur a 10% fee. This revised structure will apply in the U.S., European Economic Area, and the U.K., with other regions having tailored rates. Moreover, Google is set to introduce new developer programs, including the Apps Experience Program and an upgraded Google Play Games Level Up initiative. Developers participating in these programs will benefit from a lower commission rate of 15% on transactions from new app installations, while maintaining the 20% fee on existing apps. These changes are expected to take effect by June 30, 2026, in the U.K., EEA, and the United States, with Australia gaining access to the new fee structure by September 30, followed by Korea and Japan by the end of December. The global rollout is anticipated by September 30, 2027. Google expressed optimism that these modifications will bolster the Android ecosystem, fostering a thriving environment for developers and enhancing the quality of apps and games available to users. In a statement, Epic Games hailed the settlement, emphasizing that it will transform Android into a genuinely open platform conducive to competition among app stores. Epic CEO Tim Sweeney took to social media, expressing gratitude towards Google for the improved deal for developers, marking the resolution of their global disputes.