In a significant development stemming from its ongoing legal battle with Epic Games, Google has unveiled plans to implement changes to its app fee structure and introduce a new program for third-party app stores. This announcement follows a joint settlement proposal made by both parties in late 2022, although it is important to note that the settlement is still awaiting court approval.
Changes to Fee Structure
Google’s latest blog post outlines a revised fee structure for Android developers, which aims to separate service fees from Google Play billing fees. Currently, fees for app sales and in-app purchases can reach as high as 30%. Under the new plan, developers will face a service fee ranging from 15% to 20%. In the US, Europe, and the UK, an additional 5% fee will apply for those utilizing Google Play billing.
Moreover, the service fees for in-app subscriptions are set to decrease from 15% to 10%. However, the additional 5% fee for Google Play billing means that this reduction may not significantly benefit many developers.
Introduction of Registered App Store Program
Alongside the fee adjustments, Google is launching a new Registered App Store program. This initiative will allow third-party app stores that meet specific quality and safety benchmarks to officially register with Android, thereby enhancing the installation experience for users. The program is optional; those stores that choose not to participate will not see any alterations in their installation processes on the Android platform.
This move comes in response to Epic Games’ allegations that Google has been monopolizing app distribution through the Play Store since the lawsuit was initiated in 2020. Although the settlement proposal remains unapproved, Google is moving forward with a timeline for these changes, which are expected to take effect in the US, UK, and Europe by the end of June 2024, with a global rollout planned by September 30, 2027.
As for the Registered App Store program, Google intends to launch it outside the US initially, with plans to introduce it domestically once it receives court approval. This program is anticipated to be included in a major Android release later this year.
