- Google is set to open the Play Store to external payments starting on June 30 in the US, UK, and Europe as part of its settlement with Epic Games.
- Play Store fees will be lowered significantly, with a new 10% service fee for developers on their first $1 million in annual earnings, down from the previous 30% standard.
- External billing will allow developers to send users outside the Play Store to complete transactions, enhancing their payment options.
- Starting June 30, the billing fee for transactions processed via Google Play will be set at 5%.
- Google's settlement with Epic Games has led to significant changes in its Play Store policies, including a lower commission and the introduction of a separate billing fee.
- Australia will join the new fee structure on September 30, followed by Japan and Korea on December 31, with all other regions transitioning by September 30, 2027.
Google's new policy will allow developers to utilize external payment methods starting June 30, significantly reducing fees. The 10% service fee applies to the first $1 million in annual earnings, a major drop from the previous 30% cut.12346
This change follows a settlement with Epic Games and aims to enhance developer flexibility. For apps earning over $1 million, the fee increases to 20% for new in-app purchases and 25% for existing installs, with a 5% billing fee applicable to transactions on Google Play.7
The new structure is designed to support small developers, who will benefit from the flat 10% fee on their initial earnings. Google's announcement indicates that these changes will eventually roll out globally, with Australia joining by September 30 and Japan and Korea by December 31.89
The June 30 start date is a pivotal moment for developers, allowing them to send users outside the Play Store for transactions, a significant shift in policy. Regardless of the billing method, the service fee starts at 10% for the first $1 million in earnings, marking a substantial change in the app store landscape.
This new approach is expected to reshape the app economy, providing developers with more options and potentially lowering costs for consumers.
“Google is implementing new payment policies that allow external billing and lower fees for developers. This change is part of the settlement with Epic Games and will take effect starting June 30.”
Ars Technica
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