Google’s £260m UK app developer settlement

Alphabet’s (GOOG) Google has agreed to pay £260 million to settle a UK class-action lawsuit brought on behalf of app developers. The case challenged the commissions charged on transactions through the Google Play Store and alleged an abuse of Google’s dominant position in app distribution.

The settlement is structured to address both compensation for affected developers and the costs of pursuing the litigation. It remains a proposal until it is reviewed and approved by the UK Competition Appeal Tribunal.

Under the proposed agreement, £160 million will be made available to app developers who sold an app on the Google Play Store between August 2018 and July 2026. These funds are intended to compensate eligible developers covered by the class action period.

A further £100 million is earmarked to pay the costs of bringing and funding the lawsuit. This includes legal and associated expenses incurred in advancing the collective claim on behalf of developers.

The class action was brought by competition law professor Barry Rodger on behalf of UK app developers. The claim alleged that Google imposed "excessive and unfair" commissions on Play Store transactions and abused its dominant position in app distribution.

In the published settlement, Google makes no admission of liability and states that it believes it has strong defences to the claim. The agreement seeks to resolve the dispute without a finding on the underlying allegations.

The proposed settlement must be approved by the UK Competition Appeal Tribunal before it can take effect. A hearing to consider the deal is expected in September, at which the tribunal will review the terms and decide whether to approve the collective resolution.

If approved, the settlement will establish the mechanism for compensating eligible developers and for paying the litigation costs. Until that decision is made, the case and its financial terms remain subject to the tribunal’s oversight.

Alongside the developers’ case, a separate UK class action on behalf of millions of Android phone users remains pending. That action is distinct from the proposed £260 million settlement and is not resolved by this agreement with app developers.

The coexistence of the unresolved Android user claim and the proposed developer settlement underscores that wider legal scrutiny of Google’s app-related practices in the UK is continuing beyond this case.