Google to pay £260m to settle ‘unfair’ pricing class action lawsuit
Google’s parent company, Alphabet, has agreed to pay £260m to settle a class action lawsuit that alleged the US company imposed “unfair and excessive” charges on app developers selling apps on the Google Play Store.
The case, brought to the Competition Appeal Tribunal (CAT) by competition law professor Barry Rodger on behalf of UK app developers, claimed Google abused its dominant market position by charging excessive commissions for transactions made through its Play Store to Android customers.
The hearing was due to be heard at the Tribunal on 15 September, but the parties reached the settlement ahead of a 10-week trial, which is subject to the CAT’s approval, according to a statement from Geradin Partners, the law firm representing the claimants.
UK-based app developers who sold content through the Google Play Store from August 2018 are potentially eligible for compensation through the settlement if they do not opt out.
Damien Geradin, founding partner of Geradin Partners, said the case is “the largest settlement to date” under the UK’s class action regime for competition claims, which “should see money getting into developers’ hands less than three years after the claim was filed.”
Payouts will vary for each developer, and will be decided based on their qualifying sales on the Play Store since August 2018.
“For thousands of UK app developers, many of them small businesses, the Play Store is the only realistic route to their customers – and they had little choice but to pay Google’s commission,” professor Barry Rodger said.
Rodger added that if the Tribunal approves the settlement, “meaningful financial compensation will become available for businesses that could never have taken on a company like Google alone.”
Big Tech at the heart of British class actions
Several class actions have been brought against big tech companies in the UK in recent years, with Apple becoming the first last year to face similar claims against Alphabet over “excessive and unlawful” fees on its app store.
The billion-pound landmark case was launched back in 2021 to the Tribunal on behalf of nearly 20 million Apple users.
“We are pleased to reach an agreement with the developers to end this litigation, subject to court approval. We remain committed to supporting the UK developer community in building the next generation of digital experiences,” a spokesperson for Google said.