Google will fund a $90 million settlement for small app developers who claimed the tech giant abused its market position, according to AFP statements on Friday.
According to plaintiffs’ attorney Hagens Berman, the funds are expected to result in payments of $200,000 or more to some developers among the 48,000 in a class action lawsuit.
The case focused on allegations that Google violated antitrust laws with its Google Play app store and claimed the tech giant had a monopoly over its Android smartphone system in the US market, which penalized developers.
Comparison applies to developers with annual Google Play revenue of $2 million or less between 2016 and 2021.
In addition, Google has agreed to allow developers to pay a 15 percent service fee on the first $1 million in annual revenue, down from the previous 30 percent.
Further measures will highlight apps from independent developers and facilitate the use of these alternatives within the Android ecosystem.
Wilson White, a Google vice president for government affairs, said he was pleased with the agreement.
“As the agreement states, we remain confident about our arguments and our case, but this settlement will avoid lengthy and unnecessary litigation with developers who we see as important partners in the Android ecosystem,” White said.
Hagens Berman, who received a $100 million settlement from Apple in a similar case in 2020, hailed the agreement as an example of holding Big Tech accountable.
“Today, nearly 48,000 hard-working app developers are being paid the fair wages they deserve for their work product – something Google wanted to capitalize on, honestly,” said Steve Berman, co-founder of the company.
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