GoKawiilGoogle spent the last few years locked in a legal grudge match with Epic Games, which claimed that Google’s stewardship of the Play Store was anticompetitive. Now, the companies are thick as thieves, and Google is beginning to implement app store changes as agreed in its settlement with Epic. The lower developer fees and new payment options that Google promised are rolling out in select markets this month before expanding.
Until a few years ago, Google followed an Apple-like approach to app store billing, charging most developers a 30 percent commission for transactions in the Play Store. That was the only option, too. Directing users to make purchases outside the store was not allowed, and that’s what got Epic in hot water in 2020. Epic added cheaper external billing to the Android and iOS versions of Fortnite, getting the game pulled from both stores and prompting a lawsuit.
Apple managed to (mostly) win its case, but Google tripped up in how it tried to control the Play Store while keeping a more open appearance. The judge in the case was set to impose some dramatic remedies in 2024, including forcing Google to distribute third-party app stores in Google Play. The settlement, which Google has noted will end its dispute with Epic globally, doesn’t go that far. However, developers are about to get the promised fee reductions.
Starting on June 30, developers in Europe, the UK, and the US will have access to the new fee structure. This system will split the commission into two components: billing and service fees. The biggest win for small developers is the new flat 10 percent service fee for the first $1 million in earnings every year. Above that, the rate for various transaction types may reach 25 percent on existing installs. Apps installed after June 30 will top out at 20 percent.
Credit: Google Credit: Google
Developers will finally be allowed to send users outside the Play Store to complete a transaction, too. Google says they can design a choice screen “in accordance with our UX guidelines” to direct users to these external options. Devs pay the standard service fee on these purchases, but they’ll avoid the billing fee.