Alphabet Inc.’s subsidiary Google has unveiled a series of changes to how applications are distributed on Android devices, including new provisions that would allow rival app stores easier access to the platform and reduce fees charged to developers. The measures form part of the company’s efforts to resolve ongoing antitrust litigation and respond to increasing regulatory scrutiny in several jurisdictions.(Bloomberg Law)
The proposed system would enable third-party companies to establish their own app stores on Android phones and tablets. According to Google, businesses would be able to register with the company, pay a one-time fee, and distribute applications through alternative marketplaces. The company also plans to share the catalogue of apps currently available in the Google Play store with competing app store operators, potentially lowering barriers for rivals seeking to enter the Android ecosystem.
Alongside the structural changes, Google announced revisions to its developer fee model. The standard commission, which has traditionally been around 30 percent, will be reduced in many cases to between 10 and 15 percent for subscription services. The company also intends to separate the use of its billing system from the Play Store itself. Developers will be able to choose alternative payment processors, while those opting to use Google’s billing services would pay a flat fee of around five percent. The new fee structure is expected to be introduced in the United States, the United Kingdom and the European Union by June 2026, with further implementation planned later in the year in Australia, South Korea and Japan.
Google described the changes as part of a broader effort to modernize the Android ecosystem rather than simply respond to legal obligations. However, the announcement comes amid growing competition scrutiny on both sides of the Atlantic. In the European Union, the European Commission has been examining whether Google’s app distribution practices comply with the bloc’s Digital Markets Act, which requires major technology platforms to allow developers greater freedom to direct users to alternative purchasing options. The company has previously faced significant competition fines in the EU and could face further penalties if found to be in breach of the rules.
Regulatory attention has also intensified in the United Kingdom, where the Competition and Markets Authority has designated Google as holding Strategic Market Status in mobile platforms, allowing regulators to impose conduct requirements aimed at preventing anti-competitive behaviour.
The new proposal is also closely linked to long-running litigation between Google and Epic Games Inc., the developer of the video game Fortnite. In 2023, a jury found that aspects of Google’s Android business practices violated antitrust law. Subsequently, US District Judge James Donato ordered remedies designed to facilitate greater competition, including allowing rival app stores access to the Android app catalogue and preventing preferential treatment for Google services.
According to Epic Games, the newly announced policy changes would address many of the company’s concerns about competition in the Android ecosystem and could help resolve litigation in several jurisdictions, including the United States, the United Kingdom and Australia. Court approval in the United States would still be required for parts of the settlement.
While Google does not publicly disclose detailed financial data for its app marketplace, documents from the US litigation indicated that the Play Store generated approximately $14.66 billion in revenue in 2020. Analysts have estimated that regulatory changes affecting the platform could reduce the company’s gross profits by around $1 billion.
The proposed reforms highlight the growing influence of antitrust enforcement and digital platform regulation worldwide, as policymakers seek to ensure that dominant technology ecosystems remain open to competition.