Google to lower Play Store fees in US, Europe, UK on June 30

Google is preparing to implement lower developer fees and new payment options on the Play Store in select markets, fulfilling terms from its settlement with Epic Games.

Fee reductions take effect June 30 in initial markets. Starting June 30, developers in Europe, the UK, and the US will gain access to a new fee structure that splits commissions into billing and service fees. The biggest change for small developers is a flat 10 percent service fee on the first $1 million in annual earnings. Above that threshold, rates for various transaction types can reach 25 percent on existing installs, while apps installed after June 30 top out at 20 percent.

All transactions processed through Google's Play Store platform carry an additional 5 percent billing fee, even for publishers earning under $1 million. Google states the billing fee begins at 5 percent in these initial markets but could differ in other regions.

External billing now permitted with conditions. Developers will be allowed to direct users outside the Play Store to complete transactions and design a choice screen that follows Google's UX guidelines. They will still pay the standard service fee on those external purchases but avoid the billing fee.

The changes stem from Google's legal battle with Epic Games, which began in 2020 when Epic added cheaper external billing to Fortnite on Android and iOS. The resulting lawsuit highlighted Google's 30 percent commission and restrictions on outside payments, leading to a settlement that avoids some of the harsher remedies a judge had considered in 2024.

Global rollout stretches into 2027. Australia joins the new fee structure on September 30. Japan and Korea follow on December 31. All remaining regions move to the updated system on September 30, 2027. The June 30 start date for the first markets was required by the settlement.

New programs offer additional fee relief. Google is updating its Games Level Up program, which already provides increased Play Store visibility for implementing Google Play features, to include lower transaction fees. A new Apps Experience program extends a similar arrangement to non-game apps. Both programs launch September 30 in Europe, the UK, Australia, and the US, then expand alongside the billing changes in other countries.

The updates will allow developers to retain more revenue on Google's platform. Google retains control of the Android ecosystem and continues to receive a cut of sales. The settlement includes a next phase not addressed in the current announcement.