Google has announced sweeping changes to the way developers are charged for distributing apps through the Google Play Store, introducing a new fee structure that reduces reliance on the long-standing commission model.

The update comes as the company continues to face legal scrutiny over the operation of its Android app marketplace, including an ongoing antitrust case brought by Epic Games. Although the proposed legal settlement has not yet received final court approval, Google has confirmed it will begin implementing the revised pricing model globally.

Under the new system, developers will no longer face a standard commission across all transactions. Instead, fees will vary depending on factors including a developer’s annual revenue, when a user first installed the app and whether payments are processed through Google Play’s own billing platform or an alternative payment method.

Developers who choose to continue using Google Play Billing will still pay an additional service fee, while those directing customers to their own payment systems may qualify for lower overall charges.

For developers generating more than US$1 million in annual revenue, Google says commissions on new in-app purchases will fall to 20 per cent. Subscription revenue will attract a reduced rate of 10 per cent under the updated model.

Google is also introducing incentive programmes designed to reward developers that meet specific technical and user experience standards.

The new Games Level Up and Apps Experience programmes will provide access to even lower fees for eligible developers whose apps demonstrate high performance, support multiple device categories and incorporate recommended security and platform features. Examples include cloud save functionality, strong account protection and compatibility with products such as Android Auto, tablets and smart televisions.

The company says the revised approach is intended to better reflect the services developers choose to use rather than applying a single commission rate across all apps.

Implementation of the changes will occur in stages. Some elements are scheduled to begin in selected regions later this year, while broader international rollout will continue through to September 2027.

The announcement marks one of the most significant changes to Google Play’s commercial model since the platform launched and reflects increasing regulatory pressure on major technology companies to provide developers with greater flexibility over app distribution and payment options.