Google cuts fees for mobile apps and games

Google has reduced its Play store revenue share and settled its long-running legal disputes with Epic Games.

Publishers in the European Economic Area, UK and US will now be charged a 5% royalty on transactions to use Google Play’s billing system. Companies are also allowed to use alternative payment methods instead.

Google will also take a 20% service fee for IAPs for new installs after its new system is rolled out.

The tech giant is rolling out an Apps Experience programme and revamping the Google Play Games Level Up programme. Developers who participate will see a 20% service fee on existing installs and 15% on new app installs.

Google is also reducing its fee for recurring subscriptions to 10%.

Updated fees will roll out by June 30th in the EEA, UK and US. By September 30th, the new fees will be applicable in Australia, by December 31st for South Korea and Japan, and by September 30th, 2027 for the rest of the world.

The Google Play Games Level Up and App Experience programmes will launch by September 30th in the EEA, UK, US and Australia. They will roll out in other regions to a similar timeline as the fee changes.

Opening up

On top of this, Google is introducing a Registered App Stores programme that it claimed would make sideloading “qualified” app stores easier  - as long as they meet certain quality and safety benchmarks. App Stores that don’t participate in the programme will continue to be treated as they are now.

The scheme will begin outside of the US and will eventually roll out in the country, subject to court approval.

Registered App Stores will be launched with a major Android release by the end of the year.

Google said that following the changes, it has resolved its worldwide disputes with Epic Games. As a result, Fortnite will return to Google Play globally soon.

It should be noted that the judge in the US antitrust case has not yet approved any revised settlement between Google and Epic following a court-ordered injunction last year.