For the longest time ever, Apple and Google have imposed commissions on developers selling their apps through the companies’ respective app stores. This usually involves a cut of 30% of app sales and in-app purchases. But in recent years, developers have been fighting back, and it looks like they’re winning as Google has agreed to settle an ongoing app developers lawsuit.
Google agrees to settle app developers lawsuit
Over in the UK, Google has agreed to settle a lawsuit brought on by app developers. By agreeing to settle, Google is expected to pay £260 million. That’s no small amount. But considering that the claim was previously valued at £1 billion, it sounds like Google might have gotten off cheap.
Just in case you’re learning about this lawsuit for the first time, basically a bunch of app developers sued Google. The developers accused Google of allegedly abusing its dominant position to prevent developers from distributing their apps through alternative means, while also charging an unfair commission.
The timing of the settlement is also interesting. The case itself was supposed to go on trial next month at London’s Competition Appeal Tribunal. However, Barry Rodger, who led the case, said he had reached a proposed settlement with Google. This approval is still subject to CAT’s approval. However, ultimately it says that Google is not making any admission of liability of wrongdoing. Basically, Google is paying to make the case go away.
Not the first time
It’s worth pointing out that this isn’t the first time companies like Apple or Google have faced these types of lawsuits. The most significant one in recent times is the one Epic Games brought against both companies. The complaint was more or less the same, where Epic felt that the cut Apple and Google were taking was too much.
Ultimately, this has brought about some change. On Google’s end, the company was forced to allow third-party app stores on Android. While in the past, users could download third-party app stores, Google had put up roadblocks to deter it. Apple was also forced to allow third-party app stores. However, this doesn’t apply to the US and includes the EU, Japan, and Brazil.
Apple was also to allow developers to include links to alternative payment methods, which typically takes a lower cut than Apple’s own payment services.
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