Google will reduce commissions on its Play Store and allow developers to direct users to alternative payment systems, the company confirmed Friday. The overhaul marks one of the most significant shifts in app economics in years.

The Alphabet-owned company said it would lower fees charged to developers and permit external payment methods outside its own billing system. The move follows years of regulatory pressure and litigation, including the antitrust case brought by Epic Games in the United States.

Developer advocacy groups welcomed the decision, arguing that lower commissions would improve margins for smaller studios and subscription-based services that have long complained about the standard 30% cut. Mobile economy analysts said the change could pressure Apple to revisit its own App Store policies in response.

The move carries financial implications for Alphabet, as Google Play services contribute meaningfully to the company's Google services segment. Investors will weigh the potential hit to high-margin store revenue against reduced regulatory and legal exposure across the United States and European Union.

A Google spokesperson said the changes reflected the company's commitment to giving developers more flexibility while maintaining platform security. Epic Games chief executive Tim Sweeney has previously framed the broader fight as a battle over the openness of mobile app distribution.