Google has offered to lower the commission it takes on in-app purchases and to make it easier to use rival app stores. The offer is an attempt to avoid more drastic penalties resulting from a major court defeat and may mean lower costs and more choice for app users.

Epic Games, maker of the hugely popular Fortnite, had sued Google, claiming it was unfairly taking advantage of its position in running both an operating system and an app store. It said Google used this power to charge excessive fees and to make it more difficult for users to get apps from sources other than the official Play Store.

A jury agreed Google had breached antitrust laws, with a judge later ruling that Google would have to do three things to put things right: allow apps to collect payments through systems other than Google's own; let users access other app stores via the Play Store itself; and share its apps catalog with rivals.

Settlement Agreement

The Supreme Court later rejected a Google request to void this ruling, arguing that it would increase security risks for users.

Google has now proposed a new set of policies and Epic Games has said they consider them satisfactory. A court will now need to approve the new policies as a conclusion to the case in the US. (Source: epicgames.com)

The first big change is to in-app fees, which were 30 percent. That will drop to 20 percent as a base rate. Developers can then pay five percent to use Google's payment processor or choose to use their own payment handling service. They will now be able to link to payment sites outside of Google Play.

Rival Stores and Global Rollout

A new program will lower the fees for apps which meet "clear quality benchmarks" and offer "enhanced user benefits". The fee will drop to 10 percent for subscription payments.

The second change is a "Registered App Stores" program that will let some, but not all, third-party app stores be integrated into Google Play. Only those which meet "quality and safety benchmarks" are eligible.

If approved, the changes will roll out to the US, UK and Europe by the end of June 2026, before reaching all other countries by the end of September next year. (Source: googleblog.com)

What's Your Opinion?

Do you think these fee reductions will eventually lead to lower prices for apps and games? Would you feel safe downloading apps from a third-party store integrated into Google Play? Should regulators do more to curb the dominance of major tech companies?