Google will allow alternative billing options in Google Play starting June 30 in the US, UK, and EU, letting developers offer their own checkout systems or direct users to external websites for purchases and subscriptions.

The new structure lowers the standard commission to 30% in these regions and adds a 10% fee on a developer’s first $1 million in annual earnings from new installs, after which higher rates apply.

A two-part fee is introduced: a service fee on new in-app purchases and auto-renewing subscriptions (10% up to $1 million, then up to 25% for higher earners) plus a separate 5% billing fee for developers who continue using Google Play Billing.

The move is part of a broader settlement addressing ongoing disputes and regulatory pressure, following litigation with Epic Games and related actions against Apple and Google over app store policies.

Epic Games has criticized the changes, with Tim Sweeney pointing to Google’s support for competing stores and in-app payments.

Google’s motivation stems from regulatory and legal pressure, not generosity, including a 2023 jury ruling that found Android app distribution and billing were monopolistic, leading to openness that underpins this rollout.

The policy change is part of wider changes to app monetization and could affect how subscriptions and in-app purchases are processed, impacting checkout experiences and pricing strategy.

The rollout is tied to an antitrust settlement with Epic Games and ongoing considerations; Google will pilot discounts under Apps Experience and Games Level Up, lowering fees to 15% for new installs and 20% for existing installs for high-performing apps meeting criteria.

Pricing flexibility may bring new payment options and discounts; consumers could see new payment paths, though savings are not guaranteed.

In Europe, the EU Digital Markets Act already requires alternative app stores and external payments, while the US has pending legislation with no enacted mandate as of the report.

The changes align with a broader antitrust settlement and court actions, including a 2024 order mandating third-party app stores, though the broader settlement’s approval is not yet final.

The plan also ties into the Epic Games settlement context, with ongoing regulatory scrutiny and no final sign-off on some aspects.