Google to pay $90 million to settle legal battle with app developers

Advertising

The Google logo is seen during the gathering of startups and tech leaders, Viva Tech, in Paris, France, May 16, 2019. REUTERS/Charles Platiau/File Photo

Join now for FREE unlimited access to Reuters.com

Register

Advertising

WASHINGTON, June 30 (Reuters) – Alphabet Inc’s Google has agreed to pay $90 million to settle a legal battle with app developers over money they earned creating smartphone apps Android and to trick users into making in-app purchases, according to a court document.

App developers, in a lawsuit filed in federal court in San Francisco, had accused Google of using agreements with smartphone makers, technical barriers and revenue-sharing agreements to effectively shut down the app ecosystem and forward most payments through its Google Play billing system with a default 30% service fee.

As part of the proposed settlement, Google said in a blog post that it would put $90 million into a fund to support app developers who made annual revenue of $2 million or less from 2016 to 2021. .

Join now for FREE unlimited access to Reuters.com

Register

“A large majority of US developers who have earned revenue through Google Play will be eligible to receive money from this fund, if they so choose,” Google said in the blog post.

Google said it will also continue to charge a 15% commission to developers who earn $1 million or less per year from the Google Play Store. It started doing this in 2021.

The court must approve the proposed settlement.

There were likely 48,000 app developers eligible to apply for the $90 million fund, and the minimum payout is $250, according to Hagens Berman Sobol Shapiro LLP, which represented the plaintiffs.

Apple Inc. (AAPL.O) last year agreed to ease App Store restrictions on small developers, reaching a settlement in a class action lawsuit. He also agreed to pay $100 million. read more

In Washington, Congress is considering legislation that would force Google and Apple to allow sideloading, or the practice of downloading apps without using an app store. It would also prohibit them from requiring app providers to use Google and Apple’s payment systems. read more

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Diane Bartz in Washington
Edited by Peter Henderson and Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

Leave a Comment