Alphabet has coughed up £260mn (€303mn) to settle a UK class action over Google Play’s allegedly unfair developer charges.
According to the Financial Times, Google’s parent company struck the deal before a 10-week trial due to start next month at the Competition Appeal Tribunal.
The case alleged that Google abused its dominant market position by imposing excessive commissions on developers of Android mobile apps. Alphabet admitted no liability under the £260mn (€303mn) settlement, which still needs approval from the tribunal.
About £160mn (€187mn) has been set aside for UK developers, while £100mn (€117mn) goes on litigation funding, legal fees and other costs. The case was bankrolled by litigation-funding outfit Bench Walk and led by legal academic Professor Barry Rodger.
Rodger had been chasing as much as £1bn (€1.17bn) in compensation for app developers stuck inside Google’s toll booth. He said the settlement was a “great deal” for thousands of developers.
“If approved, meaningful financial compensation will become available for businesses that could never have taken on a company like Google alone,” Rodger said.
Thousands of developers are expected to qualify for compensation, though the payout depends heavily on their size. The smallest developers are expected to get a flat £200 (€233), while a small number of larger outfits could receive several million pounds.
Alphabet said in a statement: “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.”
The settlement is a rare win for UK class action claimants, especially those taking on Big Tech groups with deep pockets and bored lawyers. Britain introduced US-style collective litigation a decade ago, but few cases have produced meaningful payouts.
Several have been bogged down in dreary process fights, while compensation awarded so far has mostly been a bit pants.
Claimants fighting the Fruity Cargo Cult Apple scored a useful win last year when the Competition Appeal Tribunal found Apple charged developers excessive fees on App Store software.
