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

By
Archie Stonehill
,
Chief Growth Officer
Published:
Mar 5, 2026
Last Updated:
March 5, 2026
Table of Contents

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:

Transaction Type Service Fee w/ GPB (+5%)
IAP (new installs) 20% 25%
IAP (existing installs, no programs) 25% 30%
Subscriptions 10% 15%
Link-outs (web purchases from app) 20% (min $2-4) N/A
First $1M annual earnings 10% 15%

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:

Provision Current Injunction (in force) Proposed Replacement (RPMI)
Alternative Billing Fees 0% 20%
Store distribution Rival stores inside Google Play Registered App Stores program
Catalog access Rivals can access GP catalog Maintained
Link-outs Free to software + payments Only to payments, with entitlement
Native App Payments Open Open
Sideloading UX Unrestricted Restricted
Duration 3 years (~Oct 2027) 6 years (through 2032)

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

Wave Markets Date
1 US, EEA, UK June 30, 2026
2 Australia Sept 30, 2026
3 Korea, Japan Dec 31, 2026
4 Rest of world Sept 30, 2027

What This Means for Web Shop and DTC Strategy

In the US, nothing changes right now. The injunction is still in effect, and the conditions for web shop acquisition — 0% fees on alternative billing, open link-outs — remain the most favorable they've ever been. The right move is to watch April 9 closely and plan for both outcomes. If the proposal is accepted, the question becomes whether in-app link-outs still make economic sense at 20%, or whether shifting acquisition spend entirely to out-of-app channels (email, social, community) becomes the better path. We'll issue an update immediately after the ruling.

Globally, anti-steering removal is a genuine and immediate opportunity. In markets that were previously restricted — the EU, UK, Japan, Korea, and beyond — studios can now actively promote their web shops from inside their games. Even with the 20% service fee on link-out transactions, the change meaningfully increases the volume of players who discover and enter your web store ecosystem. Think of it as opening the top of the funnel: once a player is in your web store, the long-term relationship is yours.

The structural economics of out-of-app DTC, however, remain superior under every scenario on the table. When all-in acquisition cost through email, social, and community channels runs around 5%, no version of Google's fee structure closes that gap. More importantly, the value of DTC has never been purely about margin — it's about player retention, data ownership, conversion quality, and the direct relationship you build over time. None of that changes with today's announcements.

Frequently Asked Questions About Google Play's 2026 Changes

Does the new 20% Google Play fee apply to US studios right now?No. The US is still under the Epic v. Google injunction, which holds alternative billing fees at 0%. The 20% fee is part of Google's global restructuring and only applies in the US if Judge Donato approves Google's replacement proposal on or after April 9, 2026.

Can mobile games now promote their web shop inside the app?Yes, globally — Google has removed anti-steering restrictions worldwide. Studios can display price comparisons, promote web-exclusive offers, and link players directly to external checkout. Any purchase completed within 24 hours of an in-app link click still owes a 20% service fee under the new global policy.

What happens to web shop strategy if Judge Donato rejects Google's April 9 proposal?The current injunction stays in force, meaning 0% alternative billing fees and open rival store access inside Google Play continue through approximately October 2027. In-app link-outs to web shops remain fee-free in the US under that scenario.

Do out-of-app web shop purchases (via email, social, or direct traffic) owe Google any fees?No. Purchases that originate outside of a Play-distributed app owe Google nothing under any scenario currently on the table — including Google's proposed injunction replacement. Out-of-app acquisition remains structurally untaxed.

Is the Registered App Stores program relevant for game studios right now?Not for most studios. It launches with Android 17 in late 2026 and is primarily relevant for companies that operate or are considering operating their own app store. It doesn't change how individual game apps are distributed or monetized through Google Play.

Questions about how this affects your monetization setup? Reach out directly: archie@stash.gg.

About the Author

Archie Stonehill

Chief Growth Officer
Archie Stonehill is the Chief Growth Officer at Stash, collaborating with top game studios to build a first of its kind direct-to-consumer platform for games. Previously, he was Engagement Manager and Senior Expert Advisor in Games at McKinsey, and following that, was a Principal at Makers Fund, working closely with founders and investing in the next big studios. As a hardcore gamer himself, Archie is deeply passionate about the impact D2C will have on player experiences and industry innovation.

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