Google Agrees to £260 Million App Store Settlement, Sends Shares Down
Alphabet, the parent company of Google, has agreed to pay £260 million (approximately $352.3 million) to settle a UK class-action lawsuit accusing it of charging excessive commissions to developers distributing apps through the Google Play Store.
The lawsuit alleged that Alphabet abused its dominant market position by imposing unfair fees on developers whose apps run on Android devices.
Alphabet reached the agreement before a 10-week trial scheduled to begin next month, and although it did not admit liability, the company stated that it was pleased to reach an agreement with developers and reiterated its commitment to supporting the UK developer community.
According to the Financial Times, approximately £160 million of the settlement will go towards compensating UK developers, while the remaining £100 million will cover litigation funding, legal fees, and other expenses.