Google has announced major changes to Android and the Google Play Store that will give developers greater freedom over app distribution and payments, while also ending its long-running legal disputes with Epic Games across the United States, Australia and the United Kingdom.

The changes mark one of the biggest overhauls to Google’s mobile ecosystem in years and are designed to increase competition by making it easier for alternative app stores to operate on Android devices.

As part of the agreement, Epic Games confirmed it will return Fortnite to the Google Play Store worldwide while continuing to invest in the Epic Games Store for Android.

A key change gives developers more flexibility over how customers pay for apps and digital content. Instead of relying solely on Google Play Billing, developers will be able to offer their own payment systems within apps or direct customers to complete purchases through external websites.

Google said the updated model separates payment processing fees from platform service fees, giving developers more choice over the services they use.

The company is also introducing lower commissions for many developers. The service fee on new in-app purchases will fall to 20 per cent, while recurring subscriptions will continue to attract a 10 per cent service fee.

Developers participating in Google’s new Apps Experience Program or the updated Google Play Games Level Up program may qualify for even lower charges. Eligible developers will pay a 15 per cent service fee on transactions from new app installations, while existing installations will remain at 20 per cent.

Developers using Google Play’s billing system will also pay a separate billing fee. In Australia, the revised pricing model is scheduled to take effect by 30 September.

Google is also creating a new Registered App Stores program aimed at simplifying the installation of third-party app stores. Alternative marketplaces that meet Google’s quality and security standards will be able to offer a more streamlined installation process for Android users, while app stores choosing not to participate will continue to be available through the existing sideloading process.

The Registered App Stores program is expected to launch outside the United States first before expanding more broadly, subject to regulatory approvals.

Google said the broader rollout of its revised Play Store business model will occur in stages. The European Economic Area, the United Kingdom and the United States will receive the first wave of changes by the end of June, followed by Australia by 30 September. Korea and Japan are scheduled to receive the updates by the end of the year, with remaining markets expected to transition by September 2027.

The agreement also resolves global legal disputes between Google and Epic Games, which centred on allegations that Google’s control of Android app distribution limited competition.

The changes represent a significant shift in Google’s approach to Android, opening the platform to greater competition while giving developers more control over payments, app distribution and how they reach consumers.