Google to Lower Fees on Android App Store
Google has announced plans to reduce the fees charged on its Android app store, following a legal battle that accused the tech giant of operating as an illegal monopoly. The changes, filed with a federal court in San Francisco, will allow for alternative payment options to compete against Google’s Play Store system, which currently charges commissions ranging from 15% to 30% on in-app transactions.
The move comes after a 2023 trial where a jury declared Google’s setup an illegal monopoly, leading to a federal judge ordering a significant overhaul of the Play Store. In response, Google is now proposing to lower baseline commissions to 10% to 20% for subscriptions and e-commerce transactions, with a new option charging only 5% for payment processing.
Developers will also have the choice to use alternative payment systems besides Google’s, and consumers will be able to download apps from certified alternative stores. These stores, going through Google’s registration process, are less likely to raise security concerns.
The proposed changes still require approval from U.S. District Judge James Donato, who ordered a more extensive shakeup in October 2024. Google is seeking a hearing on April 9 to address any questions about the revisions, which are supported by Epic Games CEO Tim Sweeney.
Google plans to extend the new Play Store template globally, starting with the U.S., the U.K., and the E.U., pending regulatory approval in other countries. The lower fees may impact the profits of Google’s parent company, Alphabet Inc., but the tech giant’s market value has grown significantly since the lawsuit was filed.
While Google is making concessions in the Android app store case, it still faces challenges in other legal battles, including a case involving its search engine and digital ad network. Epic Games’ fight against Apple’s iPhone app store continues, with Sweeney expressing doubts about reaching a similar deal with Apple.
For now, Sweeney is pleased with the outcome of the Play Store case, quoting the Rolling Stones: “You can’t always get what you want, but if you try, you can often get what you need.” The focus now is on fostering competition in the app store market.
Michael Liedtke, The Associated Press
