Google Settles With Epic and Cuts Play Store Fees to 20%

Google and Epic Games have settled their long-running Play Store dispute, and the terms rewrite the economics of Android distribution. The standard 30% commission is gone in favor of a 20% service fee, subscriptions drop to 10%, and a new program will let vetted rival app stores install more easily.

The new fee structure

Under the settlement announced March 4, 2026, Google's old default of 30% on purchases (15% for recurring subscriptions) gives way to a "service fee" of 20% on in-app purchases and 10% on subscriptions. Developers who also use Google's own billing system pay an additional 5%. Developers in Google's Apps Experience Program or the revamped Play Games Level Up program get a different split: 20% on transactions from existing installs and 15% on transactions from new installs.

The rates apply first in the U.S., the European Economic Area and the U.K., with market-specific rates elsewhere. Because billing is now a separable 5% line item, a developer with its own payment system can in effect land at 20% or less, a structure that mirrors what regulators in Europe have been pushing platforms toward.

Opening Android to rival stores

The second pillar is a Registered App Stores program. Approved third-party stores that meet quality and safety requirements will get a streamlined installation flow for users installing apps from outside Google Play, cutting the warning screens that make sideloading feel risky. It launches outside the U.S. first, and in the U.S. once the court approves the settlement, according to TechCrunch.

That matters to Epic and any rival that wants to compete with Google Play on its own platform. It sits alongside Google's plan to verify developers across Android. Coverage of the deal says verification to block unverified apps is set to begin in late 2026, while sideloading stays possible and an advanced flow will let users override the requirement. Reports differ on some of those details, so treat the exact mechanics as still settling.

Why it matters

Google's move follows a pattern: a court ruling or regulator forces one platform to loosen terms, and the other quickly follows. Apple's commission fight in the same period, covered elsewhere on this site, centers on link-outs rather than a headline rate cut, so Android developers now have a lower published rate than iOS developers in the U.S. That could shift where studios prioritize new features and promotions.

For consumers, the practical change is gradual. Prices in stores do not fall automatically, and most apps will keep using Google's billing. The visible shift will be more third-party stores appearing with less-scary install prompts, and developers advertising web checkout alternatives.

Who benefits most

The math favors the biggest spenders and the subscription businesses. A developer that previously paid 30% on one-off purchases now pays 20%, and a subscription app that paid 15% now pays 10%. Studios in the Play Games Level Up program can reach 15% on transactions from newly acquired installs, which is an explicit incentive for developers to keep acquiring users through Google's own surfaces. The extra 5% for Google's billing system, meanwhile, creates a floor: a developer that wants a hassle-free checkout still pays a quarter of every purchase at most, while one with its own payment stack can come in lower.

The staggered schedule shows how Google is managing the transition. The U.S., the EEA and the U.K. go first on June 30, 2026, reflecting where regulators and courts have been most active. Australia follows on September 30, 2026, Korea and Japan on December 31, 2026, and a global expansion on September 30, 2027. For developers outside the early markets, the old schedule persists for roughly another year, which may encourage lobbying and regional workarounds.

Engadget framed the deal as Google ending its 30 percent fee and welcoming third-party stores, and another report described the timing as Google moving ahead of final judicial approval. The sources differ on that sequence, so the court's role remains the main open legal question. What is clear is the direction: a commission schedule that was a fixed industry norm for more than a decade has become a negotiable, region-specific number.

What to watch

• Court approval of the settlement, which gates the U.S. launch of Registered App Stores.
• Which stores apply, and whether Epic's own store is among the first approved.
• Whether Apple responds with a lower headline rate of its own.
• The European Commission's separate scrutiny of Google's Play steering rules, which produced a fine in July.

Sources

1. Google settles with Epic Games, drops its Play Store commissions to 20% — TechCrunch
2. Google cuts Play Store fee to 20% and opens the door to third-party app stores — TechSpot
3. Google ends its 30 percent app store fee and welcomes third-party app stores — Engadget