Android ecosystem: Google announces fundamental restructuring after Epic dispute

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Following years of dispute with Epic, Google has announced a fundamental restructuring of the Android ecosystem. The changes include not only the Play Store but also the fee structure and the way alternative app stores can be installed. Furthermore, Epic has indicated that Fortnite will be available in the Play Store again. However, the registration requirement for Android developers remains unchanged.

New billing options for developers

The worldwide changes, announced in November, which were partly unclear at the time, are now being officially implemented. Sameer Samat, head of the Android ecosystem, explains the changes, which will also be introduced in Europe over the course of this year, in a blog post on the Android Developers Blog. “Today we are announcing substantial updates that evolve our business model and build on our long history of openness globally. We're doing that in three ways: more billing options, a program for registered app stores, and lower fees and new programs for developers.”

Regarding billing in the Play Store, Google is opening up to developers: the company will offer more choices and freedom in processing transactions in the future. Mobile app developers will have the option to use their system in their app in addition to Google's in-house billing system or to redirect users to their website for purchases. “Our goal is to offer this flexibility in a way that maximizes choice and safety for users.”

Registered App Stores

Furthermore, Google will enable easier installation of registered app stores in the future. For these app stores registered with Google, Google offers an optimized installation process. The app stores must also meet certain quality and security standards. If a store decides not to participate, nothing changes for it; it retains the same experience as any other app installed via sideload on Android. These innovations do not change the criticism repeatedly voiced for months by alternative app store providers like F-Droid regarding Google's mandatory registration for app developers.

The program for registered app stores will initially launch outside the USA, with Europe being among the first regions. It is planned to be introduced in the USA later – “subject to court approval” .

New fee model for developers

Furthermore, Google is changing its fee model for developers: the new business model for apps decouples the fees for using Google's billing system and introduces new, lower service fees.

If developers choose to use Google Play's billing system, a market-specific rate will be charged in addition to the service fee. In the European Economic Area (EEA), the United Kingdom, and the USA, this rate is 5 percent.

Additionally, there are service fees: for new installations of an app, i.e., the first installations by users after the introduction of the new fees in a region, Google is reducing the service fee for in-app purchases (IAP) to 20 percent. Furthermore, Google is introducing a so-called “Apps Experience Program” and revising the “Google Play Games Level Up Program” “to incentivize building great software experiences across Android form factors associated with clear quality benchmarks and enhanced user benefits.”

Developers who choose to participate in these programs will pay lower rates. For IAP developers, there will be a service fee of 20 percent for transactions from existing installations and a fee of 15 percent for transactions from new app installations. Subscriptions will be charged at 10 percent.

According to Google, the new fee structure will be introduced on June 30 in the USA, UK, and EEA. It will be followed on September 30 in Australia, December 31 in Korea and Japan, and by September 30, 2027, in other countries worldwide. The “registered app stores,” on the other hand, will be introduced with “a major Android release by the end of the year,” meaning likely with a version of Android 17.

Tim Sweeney satisfied

According to Epic CEO Tim Sweeney, these adjustments to the Play Store mark the end of the years-long lawsuit against Google's business practices. “Google is opening up Android all the way with robust support for competing stores, competing payments, and a better deal for all developers. So, we've settled all of our disputes worldwide,” Sweeney said on X.

He also indicated the return of Fortnite to the Play Store. Google removed Fortnite from the Play Store in August 2020 after Epic integrated a direct payment system into the game that bypassed Google's billing. Google lost the dispute against Epic in several instances. As a result, the company is now making corresponding adjustments to its Android ecosystem in agreement with Epic.

(afl)