Google Slashes Play Store Fees, Allows Third-Party Billing

Google has quietly rewritten a big piece of the Play Store playbook. Developers who once faced a blunt 30% cut now see that fee drop to 10% for the first $1 million in annual revenue — a shift that directly answers the pressure from Epic Games' legal challenge.

There’s a twist, though. If you stick with Google’s billing system, an additional billing fee applies. In the United States, the United Kingdom and the European Economic Area that fee sits at 5%, which means the effective take still depends on the payment route you choose.

Independent developers will have more choice over how they charge users, and that choice changes the economics of building apps on Android.

Google is also opening the Play Store to alternative billing systems. Starting June 30, 2026, apps targeting users in the US, UK and EEA can use third-party billing. That capability expands on staggered dates for other markets: Australia gets it on September 30, 2026; Japan and Korea on December 31, 2026; and the rest of the world follows on September 30, 2027.

For clarity, here’s the fee and rollout snapshot:

• Revenue cut: 30% → 10% for the first $1M in annual developer revenue.
• Google billing fee (US/UK/EEA): 5% when using Google’s payment system.
• Third-party billing rollout: June 30, 2026 (US/UK/EEA); Sept 30, 2026 (Australia); Dec 31, 2026 (Japan and Korea); Sept 30, 2027 (rest of world).

There’s another layer: new programs aimed at games and apps. Google unveiled updated Games Level Up and Apps Experience program rules. Apps and games that meet those standards become eligible for reduced rates under the new structure — and those programs kick in on September 30, 2026.

What this means in practice depends on scale and strategy. Small studios that clear the $1 million threshold will now keep a larger slice of their earnings. Big publishers might still weigh the security, integration and reach of Google’s checkout against lower fees through third-party processors. Payment processing cost, fraud protection, and regional compliance all factor into that calculation.

Regulatory pressure and litigation nudged this change, but the outcome is practical: more options for developers and a more competitive payments landscape inside the Play Store. For anyone shipping an app, it’s time to run the numbers — and rethink which billing path best protects margins without compromising user experience.