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

Core Viewpoint - Google is implementing significant changes to its Play Store following a settlement with Epic Games, reducing commission rates and facilitating alternative app store installations [1][2]. Commission Structure Changes - Google will lower its Play Store commission to 20% for in-app purchases, with an additional 5% if developers use Google's billing system [1][5]. - The new "service fee" will be 10% for recurring subscriptions, down from the previous 15% [5][6]. - These new fees will be effective by June 30, 2026, in the EEA, U.K., and the U.S., with Australia adopting the new structure by September 30, 2026, and global expansion by September 30, 2027 [7]. Registered App Stores Program - Google is launching the Registered App Stores program to simplify the installation of apps from outside the Play Store, addressing concerns about the sideloading process [3][4]. - Approved alternative app stores will need to meet specific quality and safety standards [4]. Developer Programs - New initiatives such as the Apps Experience Program and a revamped Google Play Games Level Up program will incentivize developers to create quality applications on Android [6]. - Developers participating in these programs will benefit from a reduced commission rate of 15% on transactions from new app installs [6]. Industry Impact - Google believes these changes will enhance the Android ecosystem, leading to more successful developers and higher-quality apps [8]. - Epic Games has expressed support for the settlement, indicating it will promote competition among app stores and improve conditions for developers [9].