Google on its new Play Store fees and that new Level Up program

Google Play GM for games Aurash Mahbod has explained to us what the tech giant is trying to achieve with its new fee structure and Level Up program.

As we reported previously, the changes to the fees kicked in on June 30 for developers in the US, EU and UK, and will apply in Australia from September 30, Japan and Korea from December 31 and the rest of the world from September 30 2027.

Google released the below table to explain the new structure, though one thing missing from is Google’s billing fee of 5% (for devs in the US, UK and EU), which effectively means IAPs from existing players who use Google’s native billing will remain subject to the old 30% cut.

IAPs for newer installs under the same circumstances will be 25%. The billing fee in other regions may vary and has yet to be announced.

As we’ve said before, the policy changes aren’t the decisive victory Epic claims they are, but they still represent progress. Developers can now claw back a little more of what was a flat 30% IAP cut if they use another payment provider, and from players making installs from now onwards.

Devs can can get further discounts if they join Google’s Level Up program, though that requires developers to jump through a new set of compliance and technical hoops.

Mahbod did not answer our question on whether or not Epic Games played a role in how the new policies were put together. He also could not say if these changes were effectively forced upon the company after the end of its legal disputes with the Fortnite maker.

But he did say that Google has been working on several of these changes “for multiple years”.

When asked why there are so many different tiers and potential outcomes for developers rather than a blanket IAP fee drop for all developers, Mahbod claimed that Google is “actually doing both” – that is, dropping the standard 30% cut a little while adding Level Up, a new incentive program.

“First, as a baseline, we are universally reducing the standard service fee on one-time purchases for new installs from a standard 30% down to 20% and decoupling the billing fee,” he explains. “This applies automatically, with no developer action required.”

“Second, we understand that delivering a premium, cross-device experience requires investment from development teams. The Games Level Up program, and its lower rate card, are specifically designed to incentivise and reward the partners who choose to invest into building those exceptional user experiences.”

So does Google feel its efforts running the Play store are really worth the up-to-30% cut of IAPs it takes from developers? “Absolutely,” says Mahbod.

“The baseline platform service fees support our continued, immense investments across Android and Play,” he continued. “Google Play safely, efficiently, and intuitively handles the complexities of taxes, compliance, and subscriptions across 195 plus markets with over 300 local payment methods.”

“Beyond global distribution, we believe users deserve amazing experiences on every device. Our tools, and revamped programs like Games Level Up, are designed to help developers provide enhanced user journeys that lead directly to higher engagement and retention for their businesses.”

Mahbod says Google has “worked closely with developers” to integrate feedback on the new policies and Level Up program, and as a result of that process added additional placement controls for its AI-powered Sidekick product plus account sign up controls for Play Games Services.

And more broadly Mahbod says the changes have been made to minimise the impact to in-game economies while “ensuring that there are compelling rewards to power new-user acquisition mechanics.”

He added: “Our goal is to ensure that all titles see value in adopting the [Level Up] program. We regularly engage with developers globally, and collect and consider their feedback and suggestions – often integrating their recommendations. It is through this open dialog that we seek to collectively improve the platform for our developers and – by extension – our gamers.”