Google Overhauls Play Store Policies Following Landmark Settlement with Epic Games

Google is moving forward with a series of significant changes to its Play Store policies, marking a new chapter following the resolution of a years-long legal battle with Epic Games, the maker of the popular title Fortnite. The core of these changes addresses long-standing anticompetitive concerns, primarily focusing on commission rates for in-app purchases and the ease of installing alternative app stores. The tech giant announced on Wednesday that it will significantly reduce its Play Store commissions to 20% on in-app purchases, with an additional 5% applied if app developers choose to utilize Google’s proprietary billing system. Furthermore, Google is introducing a new optional program, the "Registered App Stores program," designed to simplify the process for users to install third-party app stores on Android devices.

In a company blog post, Google explicitly stated, "With these updates, we have also resolved our disputes worldwide with Epic Games." This declaration signals the conclusion of a high-profile legal challenge that saw Epic Games accuse Google of maintaining an illegal monopoly over app distribution and in-app payments on Android. The settlement is poised to reshape the competitive landscape of the Android ecosystem, benefiting both developers and consumers.

A pivotal outcome of this new settlement between the two tech rivals is the return of Fortnite to the Google Play Store globally. Fortnite, a massively popular battle royale game, was famously pulled from both Google Play and Apple’s App Store in 2020 after Epic Games introduced its own direct payment system, bypassing the platforms’ mandated in-app purchase mechanisms and their associated commissions. Alongside Fortnite’s return, the agreement also facilitates Epic Games’ continued investment in and expansion of its own alternative app store, the Epic Games Store for Android. This move is expected to bolster competition within the Android app distribution market.

Central to the settlement is Google’s new "Registered App Stores program." This initiative aims to offer a more streamlined installation flow for users who wish to install apps from outside of Google Play. One of Epic Games’ primary concerns during the legal proceedings was the cumbersome and often intimidating process of "sideloading" apps – installing applications from sources other than the official Play Store. This process historically involved prominent warnings to users about the potential dangers of non-Play Store apps, which Epic argued unfairly deterred users from exploring legitimate third-party app stores. While it remains crucial for users to exercise caution when sideloading due to inherent security risks, third-party developers like Epic Games sought a pathway to operate their own secure and trustworthy app stores without these "scare tactics."

The Registered App Stores program is designed to address this by providing a framework for approved stores. Google notes that participating stores will be required to meet specific quality and safety requirements, ensuring a level of security for users opting for these alternative channels. The program is slated to launch in markets beyond the U.S. first, with a subsequent rollout in the United States once the settlement receives court approval. This phased rollout suggests a strategic implementation, potentially driven by varying regulatory landscapes in different regions.

Another significant alteration introduced by the settlement is the adjustment to the Play Store’s commission structure. Historically, Google, much like Apple, enforced a default commission of 30% on in-app purchases, with a reduced fee of 15% for recurring subscriptions. The new structure represents a notable reduction: the "service fee" will now be 20% for in-app purchases on new app installs and a mere 10% for recurring subscriptions. This change is poised to provide substantial financial relief to developers, allowing them to retain a larger share of their revenue.

However, it is crucial to note that this revised fee structure does not encompass the use of Google’s own billing system. Developers who choose to use Google’s proprietary payment processing system will incur an additional 5% fee. This brings the total commission for using Google’s billing to 25% for in-app purchases (new installs) and 15% for recurring subscriptions. These specific rates are applicable in the U.S., the European Economic Area (EEA), and the U.K., with other countries expected to have their own market-specific rates. The unbundling of the commission from the billing system offers developers more flexibility and choice, a key demand in the antitrust discourse.

In addition to the revised commission structure, Google is introducing new programs designed to support and incentivize developers. These include an "Apps Experience Program" and a revamped "Google Play Games Level Up program." Both initiatives are crafted to encourage developers to build and deliver high-quality experiences on the Android platform. Developers who opt to participate in these programs will benefit from a more favorable commission rate structure. Specifically, they will pay the standard 20% commission on transactions occurring within their existing app installs, but will pay an even lower 15% commission on transactions originating from new app installs. This tiered approach aims to reward growth and innovation within the ecosystem.

The implementation of these new fees and developer programs will follow a phased global rollout. They are scheduled to go live by June 30, 2026, in the EEA, U.K., and the United States. Australia will gain access to the new fee structure on September 30, 2026, followed by Korea and Japan by December 31, 2026. The new fees and programs will then expand to the global market by September 30, 2027. This gradual deployment likely accounts for the complexities of integrating new policies across diverse regulatory and market environments.

Google expressed optimism about the future of its platform following these changes. Its blog post stated, "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." This statement underscores Google’s commitment to fostering a vibrant developer community and enhancing the overall user experience on Android devices.

Epic Games, the catalyst for these significant reforms, lauded the settlement and the resulting policy shifts. In its own statement, Epic noted that "These changes will evolve Android into a true open platform with competition among stores." Tim Sweeney, CEO of Epic Games, took to X (formerly Twitter) to express his approval, simply stating, "THANKS GOOGLE!" He further elaborated, calling the move a "better deal for all developers" and praising Google for "opening up Android all the way with robust support for competing stores, competing payments, and a better deal for all developers." Sweeney’s enthusiastic response highlights the profound impact these changes are expected to have on developers’ autonomy and profitability.

This settlement with Google draws parallels with Epic Games’ ongoing legal battle against Apple over similar App Store commission and payment processing policies. In that separate but related case, Apple was compelled to alter its policies to grant developers the ability to link to outside payment options, thereby circumventing Apple’s in-app purchase system and its associated commissions. That particular case is currently under appeal, with Apple most recently securing a partial reversal of the court’s initial order. The consistent pressure from Epic Games on both major mobile platform holders underscores a broader industry shift towards greater openness and competition in the digital distribution of apps and content. The Google settlement, in particular, sets a precedent for how platform owners might navigate antitrust scrutiny and evolve their business models in response to growing calls for fairer practices and increased developer choice. These reforms signal a significant step towards a more competitive and equitable landscape for mobile app developers and consumers alike.

Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.

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