Google Revamps Play Store App Commissions Policy

Google has introduced new changes to its Play Store policies, lowering commissions on app and game purchases while allowing the use of external billing systems. Along with the proposed changes on March 4, Google has also settled its ongoing lawsuit with Epic Games, which started in 2020.

Under the revised propositions, Google will reduce its service fees for app and game transactions from 15%-30% to a decreased baseline commission and a service fee of 10%-20% for e-commerce transactions. The company also informed that after the new changes, publishers from the UK, the US, and the European Economic Area will be charged a 5% royalty for Google Play transactions.

Google Play Policy Changes Target Fees and Distribution Model

The central elements of the overhaul are lower commission rates for developers, particularly for smaller studios and independent app publishers. Google reduced the Play Store service fee to 15% for the first $1 million USD in annual developer revenue.

Along with the revamped billing structure, Google will also launch the Apps Experience Programme. Participating IAP (in-app purchase) developers will pay a service fee of 15% imposed on transactions from first-time app installations, and 20% on transactions from existing installs. The prior model required a standard 30% commission on all IAP transactions.

Additionally, Google is lowering the recurring subscription service fee to 10%, from the previous 15% commission fee.

The move is designed to give developers greater flexibility while still maintaining the Play Store’s payment infrastructure. "We believe these changes will make for a stronger Android ecosystem with even more successful developers and higher-quality apps and games available,” according to the President of Android Ecosystem, Sameer Samat. 

Google Play Store Revamp Settles Previous Lawsuit

Google will also bring a Registered App Stores programme, while changing its Google Play Games Level Up model. The Registered App Stores programme will have easier sideloading for “qualified” apps, i.e, those that meet the terms and conditions.

Google also said that the policy changes resulted in resolving its legal dispute with Epic Games. The changes are part of a settlement framework aimed at easing developers' concerns; however, the updated US court injunction settlement remains pending.

The policy overhaul follows years of regulatory scrutiny and legal challenges over the company’s app marketplace practices. The tech giant was also in an antitrust lawsuit, filed by the Competition Commission of India (CCI), since 2022. The lawsuits stated Google abused its dominant position for Play Store policies and levied a fine of ₹936.44 Cr. ($102.19M).

By June 30, 2026, the deployment will start in the United States, the United Kingdom, and the European Economic Area. Australia rollout will follow by September 30, whereas Korea and Japan will get it by December 31, 2026. Other markets will receive the update by September 30, 2027.