Google will pay £260m to settle a UK class action over Play Store fees

Google (164news.com on google) to Pay £260m to Settle UK Class Action Over Play Store Fees

Google has agreed to pay £260 million to settle a class action brought by UK app developers over Play Store fees, weeks before the case was due in court. The original claim was valued at over £1 billion.

Background

  • Claim Overview: Developers sought compensation for sales of apps on the Play Store in the UK.
  • Class Representative: Barry Rodger, a competition law academic, brought the case.
  • Allegations: Google abused its dominant position by restricting app distribution and charging unfair commissions (usually 30%).

Settlement Details

  • Amount: $353 million (approximately)
  • Structure: £160m goes to eligible developers; £100m covers case costs.
  • Eligibility: Businesses that sold apps on the Play Store between August 2018 and July 2026 are included.
  • Approval: Still needs approval from London’s Competition Appeal Tribunal, scheduled for September.
  • Google's Stance: Google made no admission of liability; they believe they have strong defenses.

Quote

Rodger described the outcome as a "great outcome" for app developers, stating: "If approved, meaningful financial compensation will become available for businesses that could never have taken on a company like Google alone."

Next Steps

The tribunal will decide on the distribution of funds and final approval. The eligibility window is wide, potentially affecting many UK businesses.