Google settles with Epic Games, cuts Play Store fees to 20%

Google is settling its years-long legal battle with Epic Games over “anticompetitive concerns.” The settlement resolves disputes worldwide between the two companies, allowing Epic Games to bring its game Fortnite back to the Google Play Store. As part of the agreement, Google is dropping its Play Store commissions to 20% on in-app purchases.

The updated fee structure introduces significant changes to Android’s economics, contrasting with the previous default commission of 30% (which matches Apple’s default commission) and the old policy of a 15% reduced fee for recurring subscriptions. Under the new system, developers will pay:

• A 20% service fee for in-app purchases on new installs.
• A 10% service fee for recurring subscriptions.
• An additional 5% fee if they choose to use Google’s billing system.
• A 20% commission for transactions in existing app installs for developers participating in new programs.
• A 15% commission for transactions from new app installs for program participants.

These new fees and developer programs will go live by June 30, 2026, in the European Economic Area (EEA), the U.K., and the U.S. Australia will gain access to the new fee structure on September 30, followed by Korea and Japan by December 31. The new fees will expand to the global market by September 30, 2027. Google stated that it believes these updates will strengthen the Android ecosystem, support developer success, and bring higher-quality apps and games to users across more form factors. Epic Games CEO Tim Sweeney welcomed the changes, calling the settlement a better deal for all developers.

Google is also launching a Registered App Stores program to facilitate alternative app stores. This program addresses previous developer complaints regarding sideloading—the practice of installing apps from outside the official Google Play Store. Epic Games had previously raised concerns that the installation process involved “scary warnings” and “scare tactics” for users. While Google maintains that sideloaded apps are a “security risk,” the new program will offer a streamlined installation flow for approved alternative stores that meet specific quality and safety requirements. According to Epic Games, “These changes will evolve Android into a true open platform with competition among stores.”

Why it matters

The settlement ends a major antitrust conflict, forcing Google to fundamentally alter its Android ecosystem economics and sideloading policies, with significant ripple effects for developers worldwide.