Google overhauls Play Store policies: Lower app commissions, external billing, Third-party app stores

Google announced an overhaul of its Play Store business model to provide developers with more flexibility and choice in how they manage transactions

• App developers can guide users to their own websites for purchases
• Third-party app stores can register for easier installation flow
• New Play Store fee structure to begin in June 2026 and roll out globally by September 2027

Did our AI summary help?

Google will allow app developers to use their own billing systems in their mobile apps alongside Google Play at reduced fees and enable them to direct users to their own websites for purchases.

The company is also introducing a new "Registered App Stores" programme that will provide a more streamlined installation flow for third-party Android app marketplaces.

The changes come as Google announced an overhaul of its Play Store business model on March 4 to provide developers with more flexibility and choice in how they manage transactions. They also follow mounting antitrust scrutiny over the business practices of its app marketplace across several markets, including India, the United States, and Europe.

"We believe these changes will make for a stronger Android ecosystem with even more successful developers and higher-quality apps and games available across more form factors for everyone," said Sameer Samat, President of Android Ecosystem "We look forward to our continued work with the developer community to build the next generation of digital experiences."

With these updates, Google stated that the company has resolved its long-running legal disputes worldwide with video game maker Epic Games, known for the popular Fortnite title. This includes disputes in the United States, Australia, and the United Kingdom.

"Google is opening up Android all the way with robust support for competing stores, competing payments, and a better deal for all developers," said Tim Sweeney, founder of Epic Games. Sweeney added that Fortnite will return to the Google Play Store worldwide soon.

Epic Games also mentioned in a statement that Google will "take steps to support the future open metaverse."

How is Google changing the business model of Google Play Store?

Google is separating the fees for using its billing system and reducing the in-app purchase (IAP) service fees it charges developers from the standard 30 percent.

Participating IAP developers will now be charged a service fee of 15 percent on transactions from first-time app installs from users and 20 percent for transactions from existing installs.

Developers using Google Play’s billing system will be charged a separate market-specific rate, which will currently be 5 percent in the European Economic Area (EEA), the United Kingdom, and the United States.

A look at the old and new Google Play fee structures (Image: Google)

Google currently levies a 15 percent fee on the first $1 million developers earn each year and 30 percent on earnings above $1 million. For developers that opt for the company’s third-party billing system, it levies a lower commission of 11-26 percent, marking a reduction of 4 percent on the service fee.

Google stated that it will be launching an Apps Experience Programme and revamping its Google Play Games Level Up programme to incentivise the development of software experiences across Android form factors. Developers who choose to participate in these programmes will have even lower rates, it said, without disclosing further details.

The service fee for recurring subscriptions is being lowered to 10 percent from the current 15 percent.

When is Google rolling out these updated fees on Google Play?

Google stated that it will roll out the new Google Play service fee structure in a phased manner to ensure the company has enough time to build the necessary technical infrastructure, ensure alignment with local regulations, and enable a smooth transition for developers.

The rollout will begin in EEA, the United Kingdom, and the United States by June 30, 2026, followed by Australia by September 30, Korea and Japan by December 31, and the rest of the world by September 30, 2027.

The new Apps Experience programme and the revamped Google Play Games Level Up programme will launch in EEA, UK, US, and Australia by September 30, 2026, followed by Korea and Japan by December 31, and the rest of the world by September 30, 2027.

How will Google allow third-party app stores?

Google said third-party app stores can register with the company, allowing users who sideload them to have a more streamlined installation flow. App store operators will have to meet "certain quality and safety benchmarks" and pay a one-time registration fee.

Google Play's Third-party App Store Install Flow (Image: Google)

App marketplaces that choose not to participate will retain the same experience as any other sideloaded app on Android at present, the company noted.

"This gives app stores more ways to reach users and gives users more ways to easily and safely access the apps and games they love," Samat said.

Samat said the programme will initially launch outside the United States, with the tech giant intending to bring it to the United States later, subject to court approval.

It will launch with a version of a major Android release by the end of the year, he added.

What led to Google changing its Play Store policies?

Over the years, Google has faced intense backlash from developers, particularly in India, over its app policies, including the mandatory integration of its Play billing system worldwide and the commission fees it levies. Several app developers have previously said these fees were "extremely high" and "unfair".

In October 2022, India's antitrust watchdog the Competition Commission of India (CCI) fined Google Rs 936.44 crore for abusing its dominant position with regard to its Play Store policies, in addition to issuing a cease-and-desist order. It also issued a series of measures to modify the company's app payment policies.

The National Company Law Appellate Tribunal (NCLAT) partially upheld key aspects of CCI's order in March 2025, but reduced Google's penalty from Rs 936.44 crore to Rs 216.69 crore.

The issue also sparked an intense standoff between Google and prominent domestic internet firms such as Matrimony, Info Edge (which runs Naukri, 99acres, and Jeevansathi), and Shaadi.com in 2024, after the tech giant delisted more than a hundred apps from the Play Store. The apps were eventually reinstated following government intervention.

Google has also taken several steps in recent years to modify its policies including lowering its commission fee and introducing third-party billing for in-app purchases.

India is among the biggest markets for Google Play in terms of app downloads and users. The Android operating system also powers around 95-96 percent of the country's 700-million strong smartphone market.