Google Cuts Play Store Commission to 20% and Opens Up Self-Hosting Payments: A New Era for the Android Ecosystem

Google announces that the Play Store commission drops from 30% to 20%, opening certification for third-party app stores, as part of a strategic shift in response to Epic Games lawsuits and global regulatory pressures.
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• Allowing users to complete purchases on merchant websites
• A new track for third-party app stores
• Lawsuits, regulations, and an $800 million partnership deal
• Who are the winners?

On the 4th, Google officially announced a comprehensive reform of its Android app ecosystem’s fee structure. According to the announcement, the standard commission rate has been cut directly from 30% to 20%.

Additionally, developers participating in the “App Experience Program” or “Google Play Games Level Up Program” can offer users a 15% discounted rate for new installs; subscription fees are reduced to 10%.

Allowing users to complete purchases on merchant websites

Another key change is the level of openness for alternative payment systems.

Developers can now offer both Google billing and alternative payment options within their apps, and also direct users to their own websites to complete purchases. This is much more flexible than Apple’s 2025 App Store policy, which only allows linking to web payment pages. Google now enables two checkout buttons within the app itself.

Note: Developers using Google Play billing must pay a market-specific processing fee in addition to the service fee. In the European Economic Area (EEA), the UK, and the US, this fee is 5%.

A new track for third-party app stores

Another game-changing move is the Registered App Stores program. Third-party app stores that meet “specific quality and security standards” can apply to join this program. Certified stores will gain access to a simplified installation interface within the Android system, eliminating the need for users to repeatedly confirm or manually enable unknown sources permissions.

A detail worth noting: participation in this program is voluntary. Users can still sideload apps from stores not participating. However, Google plans to adjust the sideloading process in 2026, which may make it more complicated.

In plain terms: if you don’t join my certification system, I’ll make your installation process more troublesome.

Note: Sideloading refers to bypassing official app stores to install applications. On Android, this is done by enabling “Install unknown apps” and directly installing .apk files.

Lawsuits, regulations, and an $800 million partnership deal

All these changes aren’t just Google’s benevolence—they’re driven by legal battles and regulatory pressures. Epic Games filed an antitrust lawsuit against Google in 2020, accusing it of monopolizing the app distribution market.

In November 2025, the two sides reached a settlement. According to 9to5Google, Google and Epic also signed an $800 million partnership agreement, involving product development and Google utilizing Epic’s “core technology.”

Another push comes from the EU’s Digital Markets Act (DMA), which sets boundaries on platform monopolies. By 2025, Apple has already reduced its fees to 17% in the EU, and Google can’t afford to let competitors get ahead in regulation.

The timeline for implementing the new fee structure also reflects this consideration:

• The adjusted fee structure for the European Economic Area, UK, and US takes effect on June 30, 2026, with rollout planned for September 30
• Australia on September 30
• South Korea and Japan by December 31
• Other regions worldwide by September 30, 2027

Who are the winners?

Developers do benefit, but the gains vary. Small and medium developers already enjoy lower rates, so this adjustment is a bonus for them. The real winners are large publishers with annual revenues in the hundreds of millions of dollars—they save the most.

At the same time, consumers will have more payment options and more app sources, but the influx of third-party stores also raises security risks. Google Play Protect can only do so much; users need to stay vigilant.