US — Google is implementing app store changes as agreed in its settlement with Epic Games. The company stated the settlement will end its dispute with Epic Games globally.
Developers in Europe, the UK, and the U.S. will gain access to a new fee structure beginning June 30. This new fee structure divides commission into billing and service fees. It includes a flat 10 percent service fee for the first $1 million in annual earnings.
For earnings above $1 million, the rate on existing app installations may reach 25 percent for various transaction types. Apps installed after June 30 will have a fee rate that caps at 20 percent. For applications earning over $1 million annually, the fee will be 20 percent for new in-app purchases and 10 percent for subscriptions.
Developers are permitted to guide users outside the Play Store to finalize a transaction. Google stated developers can create a choice screen to direct users to external options, according to its UX guidelines. Developers will pay the standard service fee on external purchases but will not incur the billing fee. Transactions processed through Google's Play Store platform include a 5 percent billing fee, which also applies to the base rate for publishers generating less than $1 million. Google noted the initial billing fee is set at 5 percent in certain markets, with the possibility of different rates in other regions.
Australia will adopt the new fee structure on September 30. Following this, Japan and Korea will implement the new fee structure on December 31. All other regions are scheduled to transition to the new system on September 30, 2027.
Google is also developing modifications for its Games Level Up and Apps Experience programs. The Games Level Up program will feature a reduced transaction fee. The new Apps Experience program will provide a similar arrangement for non-game content. Both programs will be available to developers in Europe, the UK, Australia, and the U.S. on September 30. They will open to developers in other countries as those regions are incorporated into the new billing system.
Under the terms of the settlement, Google must certify third-party app stores and allow them to operate more similarly to the Play Store on devices. Google will begin enforcing developer verification in the coming months.
In 2020, Epic Games introduced external billing with lower costs for the Android and iOS versions of Fortnite, leading to the game's removal from Android and iOS app stores the same year.
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