Google proposes Play Store fee cuts in Epic antitrust settlement

Google proposed lowering Play Store commissions and creating a certification path for alternative Android app stores to settle its antitrust fight with Epic Games.

The filing in federal court in San Francisco follows Epic’s 2020 lawsuit and a 2023 jury finding that the Play Store was an illegal monopoly.

Google proposes to cut baseline commissions for subscriptions and ecommerce to about 10% to 20% and would offer a new 5% payment processing option.

Developers could use third-party payment processors, and consumers could install alternative stores that complete Google’s certification process, which the filing says reduces security warnings.

🔗 Source: ABC News

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Implications, context, and why it matters.

Google’s proposed changes echo earlier settlements that critics called ineffective

Google agreed to allow developers to offer an alternative in-app billing option alongside Google Play Billing for U.S. users under a $700 million settlement with U.S. states 1.
That agreement cut Google’s commission by four percentage points for developers who use their own payment system, bringing the effective rate to 26% from the 30% standard rate 2.
Opponents say the math leaves little room for savings since third-party payment processing fees of 3% to 6% can wipe out most of the discount 3.
Epic CEO Tim Sweeney called the 26% fee a “useless 26% Google Tax” since Google does not process those payments 2.

Google’s strategy leans on individual deals over universal change

Google’s latest proposal includes lower Play Store commissions plus a certification process for alternative Android app stores, yet past actions suggest it often contains pressure through one-off agreements.
Google settled with Match Group in a deal that, according to Match’s CFO, meant Match would not owe amounts prior to the end of 2023; TechCrunch estimated the overall value to Match at well over $300 million 3.
This approach eases friction with large developers while leaving many others inside the same fee framework; Google has said 99% of developers will pay a 15% fee under its small-developer program because only 1% generate more than $1 million in revenue 4.
Concessions forced in the Epic case, along with EU regulations, suggest the selective model may be fading, shifting the app store economy toward more competition and lower margins for both Google and Apple 5.