Google's parent company, Alphabet, has agreed to pay £260m to settle a class action lawsuit. The lawsuit alleged that the US company imposed "unfair and excessive" charges on app developers selling apps via the Google Play Store.
The case was brought to the Competition Appeal Tribunal (CAT) by competition law professor Barry Rodger, representing UK app developers. It claimed Google abused its dominant market position by charging excessive commissions for transactions made through its Play Store to Android customers.
The settlement was reached ahead of a scheduled 10-week trial, which was due to begin on 15 September. The agreement is subject to approval by the CAT, 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 may be eligible for compensation through this settlement if they do not opt out. Payouts will vary for each developer, based on their qualifying sales on the Play Store since August 2018.
Damien Geradin, founding partner of Geradin Partners, stated that this is "the largest settlement to date" under the UK's class action regime for competition claims. A spokesperson for Google said the company is "pleased to reach an agreement with the developers to end this litigation, subject to court approval."