App EconomyPolicy ShiftJul 7, 2026, 3:33 AM· 4 min read· #3 of 3 in technology

Google Play Agrees to Allow Alternative Billing and External Links for US Developers Following Epic Settlement

Google has officially updated its Play Store policies in the US to allow developers to use alternative payment systems and link to external websites for purchases. The move, stemming from the landmark Epic Games antitrust settlement, marks a major shift in the app economy by giving creators unprecedented control over their revenue.

By Factlen Editorial Team

App Developers & Publishers 45%Payments Industry Analysts 30%Platform Operators 25%
App Developers & Publishers
View the policy change as a massive victory that will fund innovation, allow for competitive pricing, and restore fair market dynamics.
Payments Industry Analysts
Emphasize that while developers gain freedom, they must now take on the complex burdens of fraud prevention and tax compliance.
Platform Operators
Maintain that app store commissions fund vital security infrastructure, malware scanning, and global distribution networks.

What's not represented

  • · Independent game developers who rely heavily on Google's discovery algorithms
  • · Cybersecurity experts concerned about fraud on unvetted third-party payment portals

Why this matters

For years, developers have been locked into surrendering up to 30% of their revenue to Google for in-app purchases. This policy change allows them to bypass those fees, paving the way for lower subscription prices for consumers and vastly higher profit margins for independent creators.

Key points

  • Google Play now allows US developers to use alternative billing systems and external payment links.
  • The policy changes stem from the antitrust lawsuit and settlement with Epic Games.
  • Developers can bypass Google's traditional 15% to 30% commission on digital goods.
  • The move gives app creators more control over pricing, checkout flows, and customer data.
  • Google is also making it easier for users to install registered third-party app stores.
30%
Traditional platform fee
10–20%
New global fee range
$46.7B
2024 Play Store consumer spending
0%
Current US alt-billing platform fee

In a watershed moment for the mobile app economy, Google has officially updated its Play Store policies to allow developers in the United States to use alternative billing systems and link directly to external payment websites. The sweeping changes dismantle the long-standing requirement that all in-app purchases flow exclusively through Google's proprietary checkout system, granting software creators a new level of financial autonomy.

The policy shift is the direct result of a bruising, multi-year antitrust battle with Epic Games. In late 2023, a federal jury declared Google's Play Store practices an illegal monopoly, finding that the tech giant used its market dominance to stifle competition and enforce a mandatory 30% commission on digital goods. That verdict set off a chain reaction of legal mandates that have now materialized into concrete developer freedoms.[1]

Following a series of court injunctions and a subsequent global settlement finalized earlier this year, Google was backed into a legal corner. The company has now rolled out its "External Content Links" and "Alternative Billing" programs for all eligible US developers, fundamentally rewriting the rules of Android commerce and ending an era of strict platform lock-in.[2]

How the Epic Games settlement restructures digital payments on Android.
How the Epic Games settlement restructures digital payments on Android.

Under the new framework, app creators are no longer prohibited from communicating with their users about cheaper prices available outside the app. Developers can place direct links within their Android apps that route users to a web browser to complete a purchase, bypassing Google's payment infrastructure entirely. This "app-to-web" flow allows businesses to offer discounts that reflect the savings from avoided platform fees.

Furthermore, developers can now integrate their own native billing systems right alongside Google Play Billing. This means a user buying a subscription or a digital item can choose to pay via a third-party processor directly within the app's interface. For app publishers, this unlocks unprecedented control over the checkout experience, fraud management, and direct customer relationships.

Furthermore, developers can now integrate their own native billing systems right alongside Google Play Billing.

The financial implications for the software industry are massive. Historically, Google Play accounted for roughly half of all global app downloads, generating tens of billions in revenue primarily through its 15% to 30% cut of transactions. By opening the gates to alternative billing, billions of dollars in revenue could shift from Google's coffers back to the developers who actually build the software.[1]

While Google is restructuring its fees globally—introducing a tiered model that lowers baseline commissions to between 10% and 20%—the situation in the US is uniquely favorable for creators right now. Under the current Epic v. Google injunction, US developers can utilize alternative billing systems without paying any platform fees to Google, pending further court approvals scheduled for later this year.

Alternative billing allows users to choose third-party payment processors directly within an app.
Alternative billing allows users to choose third-party payment processors directly within an app.

Industry analysts note that this newfound freedom comes with increased responsibility. App teams will now have to design seamless checkout flows, handle complex tax and invoicing requirements, and manage their own payment security—services that Google previously bundled into its 30% fee. However, for most businesses, the trade-off of keeping significantly more of their gross revenue is overwhelmingly worth the engineering effort.

The settlement also addresses the friction associated with third-party app stores. Google has committed to creating a "Registered App Stores" program, allowing rival marketplaces to be installed with a single click and without the intimidating security warnings that previously discouraged users from sideloading software outside the official Play Store.[1]

This capitulation by Google marks a broader turning point in the global tech landscape. It aligns with similar regulatory pressures facing Apple, including the European Union's Digital Markets Act and South Korea's pioneering laws that force platform operators to allow third-party in-app payment systems, signaling the end of the mobile duopoly's absolute control over digital payments.[1]

The policy shift redirects a portion of a multi-billion dollar revenue stream back to software creators.
The policy shift redirects a portion of a multi-billion dollar revenue stream back to software creators.

For consumers, the downstream effects could be highly beneficial. With developers retaining a larger share of their earnings, many are expected to pass those savings on to users in the form of discounted subscriptions, cheaper in-game currency, and more competitive pricing for digital services.

As the new policies take root, the mobile ecosystem is entering an era of unprecedented openness. The days of a rigid, single-lane tollbooth for digital commerce are ending, replaced by a competitive marketplace where developers have the autonomy to build direct, unmediated relationships with their audiences.

How we got here

  1. August 2020

    Epic Games files an antitrust lawsuit against Google over its Play Store billing practices.

  2. December 2023

    A federal jury unanimously declares Google's Play Store an illegal monopoly.

  3. October 2024

    A US federal judge orders sweeping remedies, including opening up the Play Store to rival billing systems.

  4. March 2026

    Google and Epic enter a new global settlement agreement to restructure fees and distribution.

  5. July 2026

    Google officially rolls out the alternative billing and external link programs for US developers.

Viewpoints in depth

App Developers & Publishers

View the policy change as a massive victory that will fund innovation, allow for competitive pricing, and restore fair market dynamics.

For the developer community, the dismantling of the 30% platform fee is seen as the removal of an artificial tax on innovation. Publishers argue that by retaining a larger share of their gross revenue, they can reinvest in better software, hire more engineers, and offer more competitive pricing to consumers. They view the ability to establish direct billing relationships as a fundamental business right that was unjustly restricted by a duopoly.

Platform Operators

Maintain that app store commissions fund vital security infrastructure, malware scanning, and global distribution networks.

Google and other platform operators argue that the fees collected through native billing systems are not merely rent-seeking, but essential funding for the ecosystem. They point out that maintaining a secure, globally available app store requires massive investment in malware scanning, content moderation, and developer tools. They caution that fragmenting the payment ecosystem could expose users to higher risks of fraud and degrade the seamless user experience that made mobile apps successful.

Payments Industry Analysts

Emphasize that while developers gain freedom, they must now take on the complex burdens of fraud prevention and tax compliance.

Financial analysts note that the shift to alternative billing is a double-edged sword for smaller developers. While avoiding a 30% fee is attractive, building and maintaining a secure payment infrastructure is costly. Developers must now navigate global tax compliance, handle chargebacks, and optimize their own checkout flows to prevent cart abandonment—services that Google previously handled seamlessly. Analysts predict a boom for third-party payment processors like Stripe and PayPal as they step in to fill the void.

What we don't know

  • How many major developers will actually abandon Google Play Billing given the added friction of managing their own payment security.
  • Whether Google will successfully implement new 'service fees' on external US transactions following the final court hearings scheduled for later this year.
  • How quickly consumers will adapt to completing app purchases in external web browsers rather than native one-tap interfaces.

Key terms

Alternative Billing
A payment processing system provided by a third party used inside an app instead of the platform owner's default system.
App-to-Web Flow
A user experience where tapping a purchase button inside an app opens a web browser to complete the transaction on the developer's website.
Sideloading
The practice of installing an application on a mobile device from a source other than the official, default app store.
Injunction
A court order requiring a party to do or cease doing a specific action—in this case, forcing Google to change its Play Store rules.

Frequently asked

Do I still have to use Google Play Billing?

No. US developers can now offer alternative in-app billing systems or link users to external websites to complete purchases.

Will apps get cheaper for consumers?

It is highly likely. Because developers no longer have to surrender up to 30% of their revenue to Google, many are expected to offer discounts for users who pay via external links.

Does this apply to Apple's App Store as well?

This specific settlement applies to Google Play, but Apple is facing similar legal and regulatory mandates globally to open up its payment systems.

Are third-party app stores easier to install now?

Yes. As part of the settlement, Google is introducing a program to allow registered third-party app stores to be installed with a single click, removing previous 'scare screens.'

Sources

Source coverage

2 outlets

3 viewpoints surfaced

App Developers & Publishers 45%Payments Industry Analysts 30%Platform Operators 25%
  1. [1]SlashdotApp Developers & Publishers

    Epic and Google Settle Antitrust Case With Global Fee Cuts and Easier Third-Party Store Access

    Read on Slashdot
  2. [2]Khoivan DevApp Developers & Publishers

    Google Play External Links & Alt-Billing (U.S.)

    Read on Khoivan Dev
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