- Google agrees to pay £260 million to settle UK lawsuit by app developers over Play Store fees
- The case accused Google of restricting app distribution and imposing excessive commissions up to 30%
- Settlement funds £160 million to eligible developers from Aug 2018 to July 2026 and £100 million legal costs
Google has agreed to pay £260 million ($353.21 million) to resolve a major UK lawsuit brought on behalf of app developers over its Play Store practices, Reuters reported on Thursday.
The proposed settlement could end a legal battle that had sought more than £1 billion in compensation. The case, led by academic Barry Rodger, accused Google of using its market power to restrict how developers distributed apps and imposing excessive commissions on sales.
The claim centred on Google's Play Store, where developers were typically charged commissions of up to 30%. Lawyers representing the developers argued that Google's policies limited alternative distribution channels and allowed the company to impose unfair terms on businesses relying on its platform.
The dispute was scheduled for trial next month before London's Competition Appeal Tribunal (CAT). Instead, Rodger's legal team and Google have now reached a settlement, subject to approval by the tribunal.
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The agreement does not amount to an admission of wrongdoing. A 19-page settlement document states that Google continues to maintain that it has strong defences against the allegations.
If approved, £160 million will be distributed among eligible developers who sold apps through the UK Play Store between August 2018 and July 2026. Another £100 million has been earmarked for the costs associated with bringing and funding the litigation.
Rodger described the proposed agreement as a significant outcome for developers, particularly smaller businesses that may not have had the resources to pursue a case against a technology giant individually.
The settlement adds to growing legal scrutiny of the business models used by major technology platforms. The UK has seen several large competition-related collective claims against technology companies in recent years, including cases involving Apple, Qualcomm and Sony.
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For Google, the agreement removes the immediate prospect of a trial over its Play Store commission structure in the UK. For developers, the outcome could provide financial compensation while keeping wider questions around app distribution and platform fees firmly in focus.
The settlement will now depend on the Competition Appeal Tribunal's approval before payments can be made.
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