Finance

Google settles UK app developer lawsuit for $353 million

The tech giant agreed to a £260 million payout to resolve claims of unfair commission practices on the Play Store, a deal now awaiting tribunal approval.

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Owen Mercer
Markets and Finance Editor
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Source: Yahoo Finance · View original source
Google agrees to settle UK app developers' lawsuit for $353 million
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Google has agreed to settle a mass lawsuit in London for £260 million ($353.21 million), resolving a high-profile dispute with app developers over the terms of its Play Store platform. The settlement, published on Thursday, represents a significant reduction from the claim’s previous valuation of just over £1 billion.

The case, led by academic Barry Rodger, alleged that Google abused its dominant market position by charging an unfair 30 per cent commission and preventing developers from distributing their apps through alternative channels. The legal action sought compensation on behalf of businesses that sold applications on the platform in the United Kingdom.

Under the proposed deal, £160 million will be allocated to app developers who sold an app on the Play Store between August 2018 and July 2026. A further £100 million is designated to cover the costs of bringing and funding the lawsuit. Rodger described the outcome as "a great outcome" for developers, noting that it would provide meaningful financial compensation to businesses that could not have taken on a company of Google’s size alone.

Despite the substantial payout, Google made no admission of liability or wrongdoing. The 19-page settlement agreement states that the company "believes it has strong defences to Professor Rodger's claim." Google did not immediately respond to requests for comment regarding the deal.

The resolution comes as the case was scheduled to go to trial next month at London’s Competition Appeal Tribunal (CAT). The settlement remains subject to the tribunal’s approval. This marks the fourth major tech antitrust case to reach a resolution or trial stage in the UK since the start of 2025, following similar legal actions against Apple, Qualcomm, and Sony.

The settlement is part of a broader period of regulatory scrutiny in the UK, where a judge recently ordered Google to simplify the installation process for rival app stores on Android. This development further impacts the competitive landscape for mobile distribution in the region.

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