Google lowers Play Store fees and opens Android to rival app stores

google-lowers-play-store-fees-and-opens-android-to-rival-app-stores
Google lowers Play Store fees and opens Android to rival app stores
Google Play icon

Google is changing how developers distribute apps and collect payments on Android devices after settling with Epic Games that requires changes to Play Store policies. The company will reduce its long-standing commissions, introduce support for competing app stores through a certification program, and permit developers to use payment systems outside Google’s billing platform.

The dispute that led to these changes began in August 2020 when Epic Games filed an antitrust lawsuit against Google over the structure of the Play Store. Epic, a North Carolina company known for the video game Fortnite, sought changes that would let alternative payment options compete with Google’s system. At the time, Play Store commissions ranged from 15% to 30% on a variety of in-app transactions.

The case reached trial in 2023. A jury determined that Google’s Play Store setup constituted an illegal monopoly. Google tried to overturn the outcome, but five months ago, the U.S. Supreme Court declined to hear an appeal challenging a federal judge’s order that required an extensive overhaul of the Play Store.

Google then filed a proposal in federal court in San Francisco that outlines the policy changes. U.S. District Judge James Donato must approve the plan, including the process for registering alternative app stores. The judge previously ordered a far more extensive overhaul in October 2024. Google has requested an April 9 hearing so the court can review the revisions.

Under the proposal, Google will reduce its standard Play Store commission from 30% to 20% for most developers. Developers participating in the company’s App Experience program and the updated Play Games Level Up program may qualify for a 15% commission. Subscription services will see the largest reduction, with Google’s share falling from 30% to 10%.

Google also plans to introduce a payment processing option that adds a 5% fee when developers choose to keep transactions inside the Play Store while using Google’s billing infrastructure. Overall, Google’s revised structure moves its commissions into a 10% to 20% range for subscriptions and e-commerce transactions.

Developers will also gain more flexibility in how payments are handled inside apps. In the United States, the United Kingdom, and the European Economic Area, developers who use Google’s billing system will pay a 5% fee, with region-specific rates in other markets. Developers can present alternative payment systems in their apps or direct users to external websites to complete purchases.

Epic Games CEO Tim Sweeney welcomed the outcome during an interview with The Associated Press that also included Sameer Samat, the Google executive responsible for Android. Sweeney said, “Epic has been advocating for open platforms for a long time and this really brings Android up to the status of a truly open platform.” Samat described Google’s decision to settle the dispute after years of conflict, saying, “We think it’s really great to focus more energy and time on building than on quarreling.”

The settlement also introduces a Registered App Stores program that gives competing Android marketplaces a pathway to operate with fewer installation warnings. Third-party app stores that complete Google’s certification process will have a streamlined installation procedure and are less likely to trigger security warnings when users attempt to download them. Participation in the program is optional, and Android users will continue to have the ability to sideload app stores that do not participate in the certification system.

The Epic Games Store for mobile devices is expected to benefit from the streamlined installation process. The changes also affect how Android users may encounter different app marketplaces depending on which platforms developers choose to support.

Google plans to introduce the Registered App Stores program alongside a major Android release before the end of the year. Access in the United States will arrive after other regions.

The rollout of the new Play Store fees and policies will occur gradually across different markets. The updated fee structure will reach the European Economic Area, the United Kingdom, and the United States by June 30, 2026. Australia will receive the changes on September 30, 2026. Korea and Japan will follow by December 31, 2026. Google plans to extend the system worldwide by September 30, 2027.

The company’s developer programs will launch in the European Economic Area, the United Kingdom, the United States, and Australia on September 30, 2026, before expanding to other regions alongside the revised fee structure. Because the rollout occurs in phases, Android users may encounter different purchasing options depending on their location and the apps they install.

Lower Play Store fees could affect Alphabet Inc., Google’s parent company. Alphabet currently has a market value of $3.7 trillion, four times higher than when Epic filed its lawsuit in 2020. Google faces other legal challenges in the United States as well. In a separate case brought by the U.S. Justice Department, Google’s search engine was declared an illegal monopoly and ordered to share more of its collected data. Parts of Google’s digital advertising network were also ruled an abusive monopoly in another federal lawsuit last year, and a federal judge in Virginia is considering whether a breakup of that business would restore competition.

Epic’s challenge against Google was launched alongside a similar lawsuit against Apple’s iPhone App Store. In that case, a federal judge concluded that Apple’s store was not a monopoly but ordered changes intended to make it easier for users to access alternative payment options. Epic argues that the change has not occurred. Sweeney said he does not expect a deal with Apple similar to the one reached with Google because the cases developed differently.

As Google prepares to implement the Play Store changes, the company also joined six other technology firms in a pledge tied to the electricity demands of artificial intelligence data centers. Executives from Google, Meta, Microsoft, Oracle, OpenAI, Amazon, and xAI met with President Donald Trump to sign what the administration calls a “ratepayer protection pledge.”

The pledge addresses concerns that electricity prices could increase as companies expand infrastructure used to train and operate generative AI systems. According to a December report from the advocacy group Climate Power, household electricity bills rose 13% nationwide in 2025. The U.S. Department of Energy estimates that electricity demand from data centers could double or triple by 2028.

Trump introduced the pledge during a roundtable event and signed a proclamation describing its purpose. The document states that the companies will “build, bring, or buy the new generation resources and electricity needed to satisfy their energy demands, and pay for all new power delivery infrastructure upgrades to service their data centers.” Trump addressed concerns raised by communities that have questioned data center construction, saying, “[Tech companies] need some PR help because people think that if a data center goes in, their electricity prices are going to go up.”

The proclamation states that the seven companies present at the event accepted the pledge’s terms and that the commitments support national policy in the United States. However, the companies will still negotiate agreements with utilities and state governments to determine how electricity infrastructure will be developed and financed.

Trump said companies will add grid capacity where possible and will cover the costs of upgrading existing power infrastructure required to support their data centers. Companies would also negotiate separate rate structures with utilities so that the electricity used by data centers is priced appropriately. The administration says the companies would remain responsible for infrastructure costs even if their data centers do not ultimately use all the electricity produced.

The pledge also addresses how data centers may assist power grids during emergencies. Trump said companies would “use their infrastructure to contribute back-up power to local grids during times of need.” Data centers could also reduce their electricity consumption when demand peaks during severe winter storms or heatwaves.

Recent weather events have raised concerns about the pressure new data centers could place on electrical grids. Texas passed a law last year giving the state’s grid operator authority to cut electricity usage at data centers during emergencies. The pledge itself states that companies will “whenever possible, make available their backup generation resources at times of scarcity.”

During the roundtable, Gwynne Shotwell, president and chief operating officer of SpaceX, spoke about power plans connected to xAI. SpaceX recently announced that it plans to merge with xAI as part of its efforts to pursue projects that involve launching data centers into space. Shotwell said xAI intends to develop a 1.2 gigawatt power plant to serve as the primary power source for its supercomputer.

She also said the company plans to develop similar levels of electricity generation for every additional data center. xAI plans to expand its Megapack battery installations to provide backup power in Memphis, Tennessee, and Southaven, Mississippi. Environmental concerns have already surfaced around those projects. The NAACP has threatened to sue xAI twice over pollution caused by temporary gas turbines installed in Tennessee and Mississippi to supply electricity for its data centers.

The pledge also includes hiring commitments tied to local communities near data center construction sites. Meta announced during the event that it launched a pilot program in Ohio to train fiber technicians. Several participants in the program attended the roundtable where the pledge was signed.