Key Takeaways
1. Google is shifting its Play Store commission from “up to 30%” to a range of 10% to 20%, based on purchase type and billing method.
2. The changes are linked to a proposed agreement with Epic Games, pending court approval, detailing new fee structures for developers.
3. For the External Payments program, fees are set at 10% for auto-renewing subscriptions and 20% for other in-app digital content, with the first $1 million in annual earnings for eligible developers also at 10%.
4. Google’s new developer guidelines allow for more flexibility in billing and distribution, recognizing alternative payment options alongside Google Play Billing.
5. A “Registered App Stores” system is being planned to make it easier to install competing Android app stores, with initial rollout expected in the US, UK, and Europe.
Google is changing its Play Store commission structure, moving away from the previous “up to 30%” model. Reports suggest that most fees will now be in the range of 10% to 20%, depending on the type of purchase and the billing method used.
Connection to Epic Games Settlement
These updates are part of a proposed agreement with Epic Games, which is still waiting for court approval. The specifics about the fee structure for developers are already mentioned in Google’s Play Console Help pages, which detail the costs associated with programs that direct users to outside payment options or content links.
Fee Breakdown
For the External Payments program, Google states that the fees for qualifying external transactions will be 10% for auto-renewing subscriptions and 20% for other in-app digital content. Notably, the first $1 million (USD) of annual earnings for eligible developers will also be charged at a rate of 10%. Meanwhile, the External Content Links program follows a similar structure, maintaining the 10% for subscriptions and 20% for other transactions (again, with the first $1 million at 10% for qualified developers). Additionally, there’s a fee for “app download events” that occur within 24 hours of a click, which costs $2.85 for apps and $3.65 for games.
Larger Changes on the Horizon
Apart from the “lower fees,” a significant change is that Android will be more flexible regarding billing and distribution. Google’s developer guidelines now acknowledge that sales can happen via Google Play Billing or through approved alternatives as per its payment regulations. This is a key aspect of the broader “choice” solutions and settlement conditions.
Reports also indicate that Google is looking to implement a “Registered App Stores” system, which will ease the process of installing competing Android app stores from the internet. They are also planning to expand the options available for developer billing systems.
The timing of these changes is as crucial as the fee percentages. Major news sources report that the rollout tied to the settlement will begin first in the US, UK, and Europe, with wider global adaptations to follow later, depending on the specific program and the court’s decision.
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