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Google starts lowering Play Store fees, making good on Epic Games settlement

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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