Google Slashes Play Store Fees to 20% in Epic Games Deal

Google officially settled its years-long global antitrust battle with Fortnite creator Epic Games on Wednesday, agreeing to slash its default Google Play Store commissions to 20% and launch a streamlined program for competing app stores.

“With these updates, we have also resolved our disputes worldwide with Epic Games,” Google announced in a company blog post. This landmark agreement clears the path for Epic Games to return Fortnite to the Google Play Store globally, while paving the way for the launch of the Epic Games Store on Android devices.

The New ‘Registered App Stores’ Program

Under the terms of the settlement, Google will introduce the Registered App Stores program. This initiative establishes a frictionless installation process for users downloading applications from third-party marketplaces. Previously, Epic Games and other developers criticized Google’s “sideloading” process, arguing that highly alarming security warnings discouraged users from installing legitimate alternative stores.

While installing apps outside of Google Play does carry inherent security risks, the new program aims to balance safety and open competition. Approved third-party stores must satisfy specific quality and security benchmarks to qualify for the streamlined process. The program will debut in international markets first, followed by a US launch once the federal court officially approves the settlement.

Breaking Down the New Play Store Commission Structure

For years, Google and Apple enforced a standard 30% commission on digital purchases, offering a reduced 15% rate only for recurring subscriptions. Google’s new model significantly undercuts this traditional fee structure. Under the revised terms, the baseline service fee drops to 20% for in-app purchases on new installs, and down to 10% for recurring subscriptions.

However, developers should note that these rates do not cover payment processing. Opting to use Google’s proprietary billing system incurs an additional 5% fee. This pricing model applies to developers operating in the United States, the United Kingdom, and the European Economic Area (EEA), with market-specific rates to be announced for other regions.

Additional Incentives for Android Developers

To encourage high-quality software development, Google is introducing two new initiatives: the Apps Experience Program and a revamped Google Play Games Level Up program. Developers who participate in these programs can lower their financial burden even further. While they will still pay the standard 20% fee on transactions from their existing user base, their commission drops to just 15% on transactions originating from new app installs.

Global Implementation Timeline

The rollouts of the new fee structures and developer initiatives will occur in phases over the next two years:

• June 30, 2026: Launch in the US, UK, and EEA.
• September 30, 2026: Expansion to Australia.
• December 31, 2026: Implementation in South Korea and Japan.
• September 30, 2027: Full global rollout.

Industry Reaction and the Contrast with Apple

Google expressed optimism about the future of the platform, stating: “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.”

Epic Games welcomed the resolution. In an official statement, the company noted, “These changes will evolve Android into a true open platform with competition among stores.” Epic Games CEO Tim Sweeney echoed this sentiment on social media, publicly thanking Google for creating a fairer marketplace for all creators.

The resolution of the Android dispute stands in stark contrast to Epic’s ongoing legal battle with Apple over App Store fees. While Apple was previously ordered to allow developers to direct users to external payment systems, that decision remains contested. The antitrust case is still under appeal, with Apple recently securing a partial reversal of the court’s original injunction.