Google settles Play Store monopoly case with $90M fund for developers
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Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has agreed to a $90M settlement with developers in a dispute over the Google Play app store, law firm Hausfeld has confirmed.
That resolves a monopolization case against Google over Play Store practices, notably including the 30% fee that developers were paying on revenue from paid apps and in-app charges, Hausfeld says.
Google is setting up a $90M fund to support American developers who earned $2M or less in annual revenue from the Google Play Store during the years 2016-2021. That covers "a vast majority" of those developers who earned revenue through the store, Google says.
Along with the $90M fund, "Google has acknowledged that the litigation was a catalyst for its 2021 launch of a program where developers pay a reduced 15% service fee on their first $1 million in annual revenues and agreed to maintain that reduced fee tier for at least three more years," Hausfeld says.
Google will publish annual transparency reports about the Play Store, and in newer versions of its Android mobile operating system it will maintain changes it implemented in Android 12 making it easier for people to tap other app stores on their devices.
Google's agreement reflects a similar deal made with small developers by Apple (AAPL) last year, which agreed to its own $100M pool for developers.
Google has faced a wave of litigation and scrutiny over its Play Store approach; recently that included an early probe from Dutch regulators.