Google starts lowering Play Store fees, making good on Epic Games settlement
Summary
Google is lowering the fees it charges app developers on its Play Store as part of a settlement with Epic Games. Starting June 30, developers in the US, UK, and Europe will pay lower fees, including a flat 10% service fee on the first $1 million they earn each year. Developers will also be allowed to direct users to pay outside the Play Store, avoiding some fees.Key Facts
- Google charged developers a 30% commission on most Play Store transactions before the settlement.
- Epic Games sued Google in 2020, claiming Google’s Play Store rules were unfair and limited competition.
- The settlement includes lower fees and new payment options starting June 30 in select regions.
- Developers will pay a 10% service fee on their first $1 million in revenue annually; fees can be higher above that.
- Apps installed after June 30 will have a maximum fee of 20%.
- Developers can now send users outside the Play Store to complete purchases, paying only the service fee, not the billing fee.
- The 5% billing fee applies to transactions processed through Google’s platform.
- The new fee system will expand globally by 2027, with Australia joining in September and Japan and Korea by year-end.
- Google will introduce programs that give developers lower fees and better visibility in exchange for using Google Play features.
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