Google is proactively revising its Play Store fees, apparently related to its proposed settlement with Epic.
The settlement is yet to be approved, but the revisions include a breaking out of Play Store fees into two categories: service fees, and billing fees.
What Are the New Fees Google Is Proposing?
Previously, the 30% fee contained what is now known as the service fee and the billing fee. With this announcement, Google is splitting that in two.
The service fee will be 20% for purchases made on existing installs, 15% for new installs, and 10% for recurring subscriptions.
The billing fee is 5% for processing payments through Google Play’s billing system.
This means that for the vast majority of transactions (i.e., existing games that process in-app payments through Google Play), the fee is 25%, only 5% less than the previous 30% single fee.
Note that the above fee calculations apply to earnings after the first 1M; the service fee on the first 1M is only 10%, adding up to 15% if the 5% billing fee is added. Please refer to the Google announcement linked above for clarification on the various fees and how they add up.
Why Is Google Proposing Two Separate Kinds of Fees?
In the U.S., the separate fees appear to be in service of Google’s intention to allow developers to offer their own billing systems, with the Standard service fees being charged regardless of billing method, and then the Google Play BIlling Fee charged additionally for using Google Play Billing.
When Will the Google Play Store Fee Revisions Take Effect?
Per Google’s announcement, these fee changes are being rolled out on a staggered schedule, first hitting the EEA, UK, and U.S. by June 30.
Then the changes will hit Australia by Sep. 30, Korea and Japan by Dec. 31, and the rest of the world by Sep. 30 of 2027.
Where Can You Learn More About the Proposed Google Play Store Fee Changes?
Additional fee breakout details and terms can be found in the Google post linked above. Additionally, The Verge has published a redlined version of the five-page court document outlining Google’s and Epic’s proposed changes, as well as the full 15-page court filings (with redactions).
FastSpring has been covering cases such as this one since 2021. To read up on the history of the Google vs. Epic cases (and other global cases and regulations regarding mobile app and games monetization), check out FastSpring’s Industry News archive.
About FastSpring
FastSpring is how gaming studios and mobile app makers sell in more places around the world. For over two decades, FastSpring has been a payment provider you can use to sell apps, games, or in-game items on your website, web shop, or embedded directly into your app with fully customizable and branded checkouts just for you. FastSpring allows you to offload the complexity of global payments, sales tax and VAT compliance, player payments support, and many other aspects of payments management. Spend less time managing your payments and compliance and more time making great apps!
Learn more about FastSpring for mobile apps or FastSpring for games.
