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Google Play fee overhaul hints at Apple Store changes

AppleInsider •
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Google unveiled a revamped fee structure for Play Store transactions that takes effect June 30 in the US, UK and EU. The changes follow a confidential settlement with Epic Games after the latter’s lawsuit over app‑store commissions. Developers will now be able to link to external payment processors, a flexibility Apple still restricts. Tim Sweeney praised the move, hinting at broader industry pressure.

Under the new model Google charges a flat 10 % service fee on any transaction, plus a 5% billing fee when the payment runs through Play. For earnings under $1 million, the rate stays at 10 %; beyond that threshold it rises to 20 % plus the billing surcharge, matching Apple’s effective rate on existing installs. The arrangement also includes a secret $800 million payout to Google from Epic, securing Fortnite’s prominent placement in the store.

Apple’s commission schedule remains a flat 30 % for most purchases, with a 15 % cut for Small Business Program participants and long‑standing subscriptions. Google’s lower baseline and external‑payment option could force Apple to revisit its fees, especially as regulators in the US and EU scrutinize app‑store monopolies. The split in rates now gives developers a tangible alternative to the traditional App Store model.