Google Play Store opens to third-party billing in US, UK, and Europe next week
▼ Summary
– Google will allow external payments in the Play Store starting June 30 in the US, UK, and European Economic Area.
– Developers pay a 10% service fee on the first $1 million in annual earnings, regardless of billing method.
– After the first $1 million, fees vary based on whether a user’s install is new or existing, with an additional 5% fee if using Google Play Billing.
– Fees for auto-renewing subscriptions also start at 10% on the first $1 million, with no extra billing fee for alternative or external billing.
– Reduced fees for qualifying apps under Google’s “Level Up” or “Apps Experience” programs will begin in September.
Starting June 30, Android developers in the United States, United Kingdom, and European Economic Area will be able to offer third-party billing inside their apps distributed through the Google Play Store. The move marks a major shift in Google’s payment policies, following a prolonged legal battle with Epic Games that largely concluded earlier this year.
In a post on the Android Developers Blog, Google outlined the updated Play Store billing rules, which reduce fees and grant developers more flexibility. Under the new structure, developers pay a 10% service fee on their first $1 million in annual earnings, regardless of whether they use Google Play Billing, an alternative built-in system, or external links for payments outside the app. That is a steep drop from the 30% commission that was standard when the dispute began.
After surpassing the $1 million threshold, fees increase for transactions that are not auto-renewing subscriptions. The rate depends on whether the user is a new install or an existing install. A new install refers to users who first downloaded or updated the app on or after the date the new fee structure launched in their region. An existing install applies to users who had the app before that date. Developers who choose to stick with Google Play Billing will pay an additional 5% billing fee in the US, UK, and European Economic Area. Google said it will announce billing fee details for other markets soon. For transactions processed through alternative billing or external web links, no billing fee applies.
Google also detailed programs that offer further fee reductions. Developers enrolled in “Level Up” or “Apps Experience” programs, which reward high-quality apps with low crash rates and support for recommended Android features, will see lower fees. Those programs take effect in September.
The policy change gives Android developers more control over payment processing and significantly lowers the cost of distributing apps through the Play Store, especially for smaller developers. It also represents a concrete step in reshaping how Google monetizes its app ecosystem after years of regulatory and legal pressure.
(Source: 9to5google.com)
