Google Settles Lawsuit With App Developers For Hefty Sum - Key Takeaways

  • Alphabet Inc GOOG GOOGL agreed to settle a lawsuit with app developers for $90 million.
  • The app developers accused Google of exploiting agreements with smartphone makers, technical barriers, and revenue-sharing deals to close the app ecosystem effectively and shunt most payments through its Google Play billing system with a default service fee of 30%, Reuters reports.
  • Google earmarked $90 million to support app developers who made $2 million or less in annual revenue from 2016-2021.
  • Also Read: Match Settles Antitrust Scores Against Google
  • Google would also charge developers a 15% commission on their first million in revenue from the Google Play Store each year.
  • There were likely 48,000 app developers eligible to apply for the $90 million funds, and the minimum payout is $250 as per Hagens Berman Sobol Shapiro LLP, who represented the plaintiffs.
  • In 2021, Apple Inc AAPL agreed to ease App Store restrictions on small developers, striking a deal in a class action. It also agreed to pay $100 million. 
  • In Washington, Congress is weighing legislation requiring Google and Apple to allow downloading apps without an app store.
  • Price Action: GOOG shares closed lower by 2.57% at $2,187.45 on Thursday.
  • Photo by Firmbee via Pixabay
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