Google is loosening its grip on Play Store payments, but it is not letting go of the revenue stream entirely.
Starting June 30, Google will begin rolling out lower Play Store fees and expanded support for third-party payment options in the European Economic Area, the UK, and the US. The changes could give developers more room to steer users toward external payment methods while still requiring them to pay Google a platform fee.
The move puts Google in a different posture from Apple, which has more aggressively defended its App Store payment model amid regulatory and legal pressure.
Changes to Google Play fee structure
For the first $1 million in revenue, Google said it will take 10% on auto-renewing subscriptions and other transactions for both new and existing installs. For developers earning more than $1 million, which Google says is about 1% of the Play Store, the rate will be 20% for new installs and 25% for existing installs.
This is reduced to 20% for external web apps, while the rate remains 10% for auto-renewing subscriptions.
Apps can enroll in the Games Level Up and Apps Experience programs if they meet guidelines on memory usage, crash rates, cloud saving, security tools, and multi-device support, including tablets, smart TVs, and Android Auto.
If developers meet the requirements, fees for eligible transactions can drop by five percentage points.
Alongside the fee changes, Google is also opening up its platform to external web link transactions. This means app developers will be able to use their own payment methods to get customers to subscribe or pay for in-app items. Google will still take a cut, but it does open the door for developers to move customers away from the Google Play billing system.
The update will go live in the European Economic Area, which includes most of the EU, alongside the UK and the US, on June 30. The Games Level Up and Apps Experience programs will then go live in those regions on September 30, with the fee reduction and programs also launching in Australia on the same date. Japan and South Korea will receive the updates on Dec. 31.
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Google is pushing these changes forward before the antitrust lawsuit between it and Epic Games is fully settled. While Apple has fought hard to protect its current payment structure and has made it difficult for alternative app stores to thrive, Google appears more willing to accept the new arrangement.
This may be partly because Apple generates far more revenue from these transactions than Google. Apple said the App Store facilitated $1.3 trillion in app sales and billings in 2024, and while it received no commission on more than 90% of that, the remaining share still adds up.
As iPhone and other hardware sales stall, its Services segment has grown to more than $100 billion in annual revenue, with a higher profit margin than its hardware business.
Google may also be trying to build goodwill with European regulators, who have pursued the search giant through various antitrust and competition cases, including on this issue.
The next test is whether developers actually move customers outside Google Play billing, and whether regulators view the changes as meaningful reform or another version of the same app store toll road.
Also read: The UK has also been active outside the EU, pushing both Apple and Google to reform their app store policies on fees.