Google Play Store Billing Overhaul 2026: New Fee Structure, External Payments, and the Epic Games Settlement

Google is rolling out the new billing model in phases across multiple markets . Australia follows in September 2026, with Japan and South Korea receiving the changes by the end of 2026, and the rest of the world by September 30, 2027 . The first confirmed wave begins in the United States, United Kingdom, and European Economic Area (EEA) on June 30, 2026 .

The Core Structural Change: Fee Unbundling

Google is moving away from a single bundled commission model by separating the Play Store charge into a service fee and, when Google Play Billing is used, a separate billing fee . The service fee covers the platform's distribution and discovery costs; the billing fee covers payment processing . The most important consequence: developers can now use their own billing processor and pay only the service fee on that transaction .

Developers can use alternative checkout options, including external payment links, in the US, UK, and EEA starting June 30, 2026 . This is a major expansion of Google's billing choice program, which had been limited to certain markets and pilot programs .

Service Fee Structure by Transaction Type

The revised structure introduces lower service fees based on revenue, transaction type, and install date :

• First $1 million in annual revenue: 10% service fee, applicable in the US, UK, and EEA . This includes all transaction types — new installs, subscriptions, and existing installs — for developers under the threshold .
• Auto-renewing subscriptions: 10% service fee at all revenue levels for the US, UK, and EEA .
• New install in-app purchases: 20% service fee for standard transactions, with further reductions possible via incentive programs .
• Existing install in-app purchases: 25% service fee for standard transactions .

Billing Fee (When Using Google Play Billing)

When a developer chooses to use Google Play Billing, an additional 5% billing fee applies on top of the service fee under the new structure described for the US, UK, and EEA . If a developer uses an alternative checkout option, the separate billing fee does not apply .

Real-world examples of total fees:

• Subscription with Google Play Billing: 10% service fee + 5% billing fee = 15% total
• Subscription with alternative billing: 10% service fee only = 10% total
• New install in-app purchase with Google Play Billing: 20% service fee + 5% billing fee = 25% total
• New install in-app purchase with alternative billing: 20% service fee only = 20% total
• First $1 million revenue with Google Play Billing: 10% service fee + 5% billing fee = 15% total
• First $1 million revenue with alternative billing: 10% service fee only = 10% total

Developer Incentive Programs

Google is introducing two new incentive programs that can lower the service fee further for qualifying developers :

• Apps Experience Program: Developers that meet quality benchmarks, including integration with Google features and delivering high-quality experiences on non-phone form factors, can qualify for a service fee reduction to 15% on new installs (instead of 20%) .
• Google Play Games Level Up Program: Game developers meeting similar quality and integration requirements can also access the 15% service fee on new installs .

These program rates are available in the US, UK, and EEA from June 30, 2026 . The specific criteria and application process have not been fully detailed, but Google says they are designed to incentivize exemplary Android app experiences .

Key Takeaway for Developers

Google's June 30 changes represent a major restructuring of the Play Store's business model, especially in the US, UK, and EEA . The old bundled 30% commission approach is being replaced by a more transparent and separable service fee plus billing fee model . For subscription apps, the effective rate remains at 15% for most developers using Google Play Billing, but drops to 10% if they switch to an alternative payment processor .

Indie developers under $1 million in annual revenue benefit from the 10% service fee floor, regardless of billing choice . Larger developers face a complex matrix of rates depending on install date, transaction type, billing choice, and participation in incentive programs . The phased global rollout means developers outside the first-wave markets will see these changes over the next 18 months .