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.