Google to Allow Third-Party Payments on Play Store After Antitrust Settlement
Google has announced a major policy change that will allow Android app developers to use alternative payment systems instead of the company's proprietary billing. The decision, effective from June 30, 2026, applies to developers operating in the United States, the United Kingdom, and the European Economic Area.
The policy shift follows an antitrust lawsuit filed by Epic Games, the maker of Fortnite, which challenged Google's mandatory 30% commission on in-app purchases as anti-competitive. As part of the settlement, Google agreed to restructure its fee model and open the Play Store to third-party payment options.
Under the new framework, Google will split its platform charge into two components: a 'service fee' and a 'billing fee'. Developers earning up to $1 million annually will pay a service fee of 10% for new in-app purchases and auto-renewing subscriptions. Larger developers will face a service fee of up to 25%.
Developers who use Google Play's default checkout system will be charged an additional 5% billing fee to cover transaction security and processing. However, those who integrate third-party billing networks or link users to external websites for payments can avoid this extra fee.
The initial rollout begins in Western markets this month, with expansion to Australia in September, followed by Japan and South Korea in December. The remaining global markets will transition by September 2027.
This change is expected to give developers more flexibility and potentially lower costs, which could benefit consumers through reduced app prices. However, Google maintains that the service fee reflects the value of its platform, including distribution and security services.
The move is part of a broader trend of regulatory scrutiny over app store practices, with similar cases in the European Union and elsewhere. Google says it will continue to comply with local laws and adapt its policies accordingly.
