Google to Cut Play Store Commissions to 10-20% and Add 5% Fee Option

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Google will lower Play Store commissions to 10-20% for subscriptions and e-commerce, and introduce a 5% payment processing fee, offering developers alternative payment systems and certified third-party app stores. The proposal awaits federal judge approval with a hearing set for April 9 and targets U.S., U.K., and EU rollouts.

1. Settlement Details

Google will reduce its Play Store commissions from 15-30% to a 10-20% range for subscriptions and e-commerce transactions, and introduce a new 5% payment processing fee. This offers developers greater choice and cost savings on in-app transactions.

2. Alternative App Store Access

A new certification process will allow rival app stores to be indexed by Google, enabling users to download apps from third-party stores with fewer security warnings. Developers can also integrate non-Google payment systems for in-app purchases.

3. Approval Process and Rollout

The proposed changes are awaiting approval from U.S. District Judge James Donato, with a hearing scheduled for April 9. Google plans to launch these revisions first in the United States, the United Kingdom, and the European Union pending regulatory clearance elsewhere.

Sources

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