Google to Cut Play Store Fees After Epic Games Settlement

Google has agreed to implement a tiered fee system and expand access to alternative app stores as part of a proposed settlement with Epic Games, ending a years-long antitrust dispute that began in 2020. 

The agreement, which still requires court approval, follows a federal judge’s 2023 ruling that the Google Play Store constituted an illegal monopoly.

According to The Verge, the settlement introduces a tiered fee system, capping Google’s commission at 9% or 20%, based on transaction type and installation date. Developers can still use Play Billing, but may now offer alternative payment options side by side and set different prices across platforms.

This marks a compromise for Epic Games, which initially demanded Google end its mandatory Play Billing requirement altogether.

Google to Approve Registered App Stores, Remove ‘Scare Screens’

Google will also remove “scare screens” that warned users when installing apps from outside the Play Store. Under a new “Registered App Store” program, third-party store operators can apply for approval to make installations easier and safer for users.

Android president Sameer Samat said the changes “focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition all while keeping users safe.” 

Meanwhile, Epic Games CEO Tim Sweeney called the settlement “awesome,” adding that it “doubles down on Android’s original vision as an open platform to streamline competing store installs globally, reduce service fees for developers on Google Play, and enable third-party in-app and web payments.” 

He also contrasted it with Apple’s approach, calling Google’s deal “a comprehensive solution” that stands apart from Apple’s restrictive app store model.

If approved, the settlement could reshape Android’s ecosystem, increasing competition, lowering developer costs, and setting a new precedent for app store regulation worldwide.