Google Android Policy Update: What It Means for Your DTC Strategy

TL;DR

Google announced three global changes to its Android business model today, and separately filed a revised motion to modify the US court order from Epic v. Google. These are two different things that most press is conflating.

1. New fee structure globally. Google is splitting its 30% fee into a 20% "service fee" (distribution) + 5% optional payment processing fee. Developers using their own billing save the 5%. Linked-out web purchases still owe the 20%.
2. Anti-steering removed globally. You can now tell users about your web store, show price comparisons, and link out directly from the app. This is a real, practical improvement for DTC onboarding worldwide.
3. Registered App Stores program. Third-party app stores get a simplified install flow on Android 17 with no per-transaction fees to Google.
4. US unchanged until April 9. The current US injunction (0% fees, alternative billing allowed) stays in force. Google filed a revised proposal to replace it, but nothing changes until Judge Donato rules.

Bottom line: Good news for DTC globally. The US remains the best environment. No action required on your end right now.

1. What Changed Globally

These are voluntary changes Google is rolling out everywhere except the US (which depends on court approval).

Fee Restructuring

Google reframed its fee as two components:

• Service Fee (distribution via Play): applies to all transactions from a Play-distributed app, regardless of how the user pays. Standard rate: 20% on new installs.
• Google Play Billing Fee (payment processing): 5%, only if you use Google's payment rails. Use your own billing and you skip this entirely.

The practical result:

Program discounts (Level Up / Apps Experience) can reduce the service fee to 15% on new installs, but require building across Android form factors against quality benchmarks.

Anti-Steering Removal + Native Payment Choice

Developers can now:

• Tell users about external purchase options inside the app
• Display pricing differentials ("Save 20% on our website")
• Include direct links to web checkout (subject to fees)
• Use their own billing systems in-app

The catch: All in-app-originating transactions (including link-outs) owe the 20% service fee. Google is mandating APIs to track when a user clicks out and completes a purchase within 24 hours.

Net assessment: Anti-steering removal is a real win for DTC messaging and onboarding. It is great news for web shops in particular. The 20% tax on link-outs limits per-transaction margin, but open messaging should increase the volume of users entering your web store ecosystem. Out-of-app DTC (email, social, community) remains completely untaxed.

Registered App Stores

• Third-party stores meeting Google's criteria get a simplified install flow on Android 17
• One-time registration fee ("hundreds of dollars"); no per-app or per-transaction fees
• Launches with Android 17 (late 2026), outside the US first

This does not give rival stores access to Google Play's app catalog or distribute them inside Play. Those provisions only exist under the current US injunction.

2. What's Happening in the US

The current US injunction from Epic v. Google remains in force. Today's filing is a proposal to replace it. Here's the comparison:

‍Key date: April 9. Judge Donato will decide whether to accept the proposed replacement. Until then, the existing injunction holds. If rejected, the current rules (0% fees, alternative billing) stay through ~Oct 2027.

3. What This Means for You

US: No changes. Keep doing what you're doing.

The injunction is still in effect. Direct link-outs and alternative billing at 0% platform fees continue. No action required.

• If the RPMI is adopted: 20% service fee on in-app link-outs + $2-4 minimum would apply. We'd work with you to model whether in-app link-outs remain viable vs. shifting to out-of-app acquisition only.
• If the RPMI is rejected: current injunction stays. 0% through ~Oct 2027.

Global: New DTC onboarding opportunities, but more information needed.

In previously restricted markets (EU, UK, Japan, Korea, and rest of world), you can now explicitly message about web stores, show price comparisons, and link out directly from the app. Even with the 20% tax on link-outs:

• More aggressive in-app web store onboarding flows are now possible globally
• Loyalty-first strategies have more room to operate alongside explicit commercial messaging
• The volume of users entering your web store ecosystem should increase, even if per-transaction margin is narrower on link-outs

Out-of-app DTC remains untaxed under all scenarios.

DTC web store economics (~5% all-in via out-of-app acquisition) remain structurally superior to any Google Play channel (20-30%). The fee delta matters, but the real value is conversion, retention, data ownership, and direct player relationships.

4. Rollout Timeline

5. Recommended Actions

1. No changes needed in the US right now. Current injunction holds. We'll flag if April 9 changes anything.
2. Start planning global DTC messaging. Anti-steering removal opens up in-app web store promotion. Think about how you want to message price differentials and web-exclusive value.
3. Model your link-out economics. The 20% service fee on link-outs is real. For many games, out-of-app acquisition (email, social, community) at 0% will remain the better path. In-app link-outs make sense for high-volume onboarding even at 20%.
4. Watch the April 9 hearing. This is the decisive US event. We'll send an update after.

Reach out with any questions.

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