Google and Epic Games have finalized a settlement transforming Android app distribution and Play Store fees worldwide. This agreement, effective until June 2032, includes capped fees and expanded support for third-party app stores.
Fee Changes and Payment Options
Google's share from developer transactions is now capped at 20% or 9%. The 9% fee covers most microtransactions, adding a 5% Play billing commission when using Google’s billing. The 20% rate applies to transactions granting significant gameplay advantages, like loot boxes.
Apps may now include side-by-side payment methods, a change that was a point of contention leading to Fortnite's removal from Google Play. Developers can choose to present Play Billing alongside other options without interference, allowing apps to set prices based on the payment method.
Support for Third-Party App Stores
The settlement mandates OS-level support for "Registered App Stores" in the upcoming version of Android. These stores, registerable as app sources, simplify installation from websites, bypassing sideloading warnings. Although certification requirements apply, fees will not depend on revenue.
Google aims to ease friction from its ecosystem while ensuring user safety. Changes to register third-party app stores are targeted for June 2026, coinciding with Android 17's release.
Strategic Implications
The settlement, intended to align with court verdicts and minimize delays, will be presented to U.S. District Judge James Donato for approval. Epic CEO Tim Sweeney views this as "doubling down on Android's open platform vision," while Google notes increased user choice and competition without compromising safety.
