Google Cuts Play Store Commission from 30% to 20%

Google will no longer charge a 30 percent commission on app sales and in-app purchases through the Google Play Store. In an announcement on Thursday (March 5), the company said the fee will be reduced to 20 percent, and in certain cases it may be lowered further to 15 percent. For subscriptions, the commission will drop to 10 percent, reports Engadget.

The decision follows Google’s agreement with Epic Games in November 2025. However, the company is implementing these changes on its own initiative without waiting for final court approval.

Google also said that using alternative billing systems will now be easier. Developers will be able to offer alternative billing options alongside Google’s own billing system or redirect users to their own websites for purchases. Analysts believe these rules are considerably more flexible than Apple’s policies.

Google has also created a pathway for third-party app stores. Through a program called “Registered App Stores,” secure and high-quality third-party app marketplaces will be allowed on Android.

If an app store does not participate in this program, users will need to install it through sideloading, a process Google has indicated may face stricter controls later this year.

The new fee structure will take effect in the European Economic Area (EEA), the United Kingdom, and the United States by June 30.

It will be introduced in Australia by September 30, in South Korea and Japan by December 31, and in the rest of the world by September 30, 2027.

Google also announced that the Google Play Games Level Up program and the App Experience program will launch in the EEA, the United Kingdom, the United States, and Australia on September 30.

Meanwhile, the Registered App Stores program will be introduced later this year alongside a major Android release, according to the company.

In 2021, Google first introduced a 15 percent fee structure, applicable to developers’ first $1 million in revenue.

Analysts believe that pressure from regulators following Epic Games’ lawsuit has been the main driver behind these major changes.

As part of the settlement, Google has also entered into an $800 million partnership agreement with Epic Games for product development and technology collaboration.

DBTech/BMT/OR