Google is moving forward with a series of Play Store changes after settling a years-long legal battle with Fortnite maker Epic Games over anticompetitive concerns. The tech giant on Wednesday said it will drop its Play Store commissions to 20% on in-app purchases, with another 5% tacked on if app developers choose to use Google’s billing system. It’s also making it easier for users to install alternative app stores through a new optional program called the Registered App Stores program.
“With these updates, we have also resolved our disputes worldwide with Epic Games,” Google said in a company blog post.
The changes are part of a new settlement between the two tech rivals that will allow Epic Games to bring Fortnite back to the Google Play Store globally, while also investing in its own alternative app store, the Epic Games Store for Android.
As part of the agreement, Google’s Registered App Stores program will offer a more streamlined installation flow for users who want to install apps from outside of Google Play. One of Epic’s concerns was that the process for sideloading apps involved scary warnings to users about the danger of non-Play Store apps. Of course, users should be wary — sideloaded apps are a well-known security risk. But some third parties, like Epic Games, wanted to run their own legitimate (and secure) app stores without the scare tactics.
That program will allow this, as approved stores will need to meet certain quality and safety requirements, Google notes. The program is coming to markets beyond the U.S. first. Once the settlement is approved by the court, it will launch stateside as well.
Another notable change is the adjustment to the Play Store commission structure. Like Apple, Google’s default commission has been 30%, with a reduced fee of 15% for recurring subscriptions. Now, it will go even lower: the new “service fee” will be 20% for in-app purchases on new installs and 10% for recurring subscriptions.
However, this fee does not include the use of Google’s own billing system — that’s another 5%. (This rate applies in the U.S., European Economic Area [EEA], and the U.K. Other countries will have their own market-specific rates.)
There will also be new programs for developers, including an Apps Experience Program and a revamped Google Play Games Level Up program, both of which incentivize developers to build quality experiences on Android. Developers who opt to participate in these programs will pay the 20% commission on transactions taking place in their existing app installs, but will pay only a 15% commission on transactions from new app installs.
