The clash between Epic Games and Google reached a major milestone that saw Google eventually alter its Play Store policies. Google has now announced a major update to its Google Play Store policies, slashing developer fees, expanding payment options, and introducing support for third-party app stores. The changes have been introduced with the aim of increasing competition, reducing costs for developers, and addressing long-standing antitrust concerns following the Epic Games settlement.
Google reduces fees, brings flexible billing structure
Under the new fee structure, Google is lowering its service fee on in-app purchases and subscriptions. The standard rate drops from 30% to 20% for transactions from new user installs (first-time installations after regional rollout). Recurring subscriptions will see a reduced 10% fee. Developers in select programs, such as App Experience or Google Play Games Level Up, can qualify for rates as low as 15% on new installs.
A significant shift is the decoupling of service fees from billing processing fees. Developers using Google Play Billing will now pay an additional market-specific processing fee, i.e., 5% in the US, UK, and EEA, with localised rates in other regions. This separation gives developers more flexibility to manage costs while retaining access to Google’s secure payment system.
Play Store allows alternative payments, third-party marketplaces
Developers will also gain greater billing freedom. Apps can now integrate alternative billing systems alongside Google Play Billing for in-app purchases. Additionally, apps will be allowed to direct users to external websites for completing transactions, enabling developers to avoid Play Store fees on those purchases (subject to updated guidelines and user consent).
Additionally, Google is launching the “Registered App Stores” program – an initiative that simplifies the discovery, download, and installation of third-party Android marketplaces. Hence, app stores like the Epic Games Store can be directly sourced from the web or other sources. Registered stores will face reduced security and installation barriers compared to now, marking a clear step forward in platform competition.
The updates follow Google’s $2.36 billion settlement with Epic Games in late 2025 and build on earlier regional concessions in the EU, India, and South Korea.