Google reaches a settlement with Epic Games and reduces Play Store commissions to 20%

Google is moving forward with a series of changes to the Play Store after settling a years-long legal battle with Fortnite maker Epic Games over anti-competitive concerns. The tech giant said Wednesday it will cut Play Store commissions to 20% on in-app purchases, with another 5% cut if app developers choose to use Google’s billing system. It also makes it easier for users to install alternative app stores through a new optional program called the Registered App Stores Program.

“Thanks to these updates, we have also resolved our worldwide disputes with Epic Games,” Google said in a post on the company’s blog.

The changes are part of a new settlement between the technology rivals that will allow Epic Games to return Fortnite to the Google Play Store globally, while also investing in its alternative app store, the Epic Games Store for Android.

As part of the agreement, the Google Registered App Stores program will provide a simpler installation flow for users who want to install apps outside of Google Play. One of Epic’s concerns was that the process of sideloading apps included scary warnings to users about the danger of non-Play Store apps. Of course, users need to be careful, as side-loaded apps are a known security risk. But some third parties, like Epic Games, wanted to operate their own legitimate (and safe) app stores without using scare tactics.

This program will allow for this, as certified stores will need to meet certain quality and safety requirements, Google notes. The software is coming to markets outside the US first. Once the settlement is approved by the court, it will be launched in the US as well.

Another notable change is the modification of the Play Store commission structure. Like Apple, Google’s default commission is 30%, with a reduced fee of 15% for recurring subscriptions. Now, the fees will drop even lower: the new “service fee” will be 20% for in-app purchases on new installs and 10% for recurring subscriptions.

However, this fee does not include the use of Google’s billing system — that’s another 5%. (This price applies in the US, EEA and UK. Other countries will have their own market prices.)

There will also be new programs for developers, including the App Experience Program and a revamped Google Play Games Level Up program, both of which incentivize developers to build high-quality experiences on Android. Developers who choose to participate in these programs will pay a 20% commission on transactions made on their existing app installations, but will only pay a 15% commission on transactions from new app installs.

These new fees will be effective by June 30, 2026 in the European Economic Area, the United Kingdom and the United States. New developer programs will also be launched at that time.

Australia will be able to access the new fee structure on September 30, followed by Korea and Japan by December 31. The new fees will expand to the global market by September 30, 2027.

“We believe these changes will create a stronger Android ecosystem with more successful developers and high-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,” Google’s post said.

Epic Games praised the settlement and the resulting changes in its own statement, noting that “these changes will lead to the development of Android into a true open platform with competition between stores.” At X, Epic Games CEO Tim Sweeney said, “THANK GOOGLE!” He called the move “a better deal for all developers.”

Epic Games has long been involved in a similar lawsuit with Apple over App Store commissions. Apple had to change its policy to give developers the ability to link to third-party payment options. The case is on appeal, and Apple recently won a partial overturn of the court order.