Google has finally reached a settlement in a 2021 class-action antitrust lawsuit that left the company owing US app developers $90 million. The lawsuit claims that the Google Play Store's 30% discount on all in-app purchases is too high, especially since developers don't have goo

2024/05/1512:01:32 technology 1402

Google has finally reached a settlement in a 2021 class-action antitrust lawsuit that left the company owing US app developers $90 million. The lawsuit claims that the Google Play store's 30% discount on all in-app purchases is too high, especially since developers don't have good third-party app store options they can use to avoid fees. While Google decided to halve a developer's share of a first $1 million in in-app purchases in 2021 to 15%, it also created a potentially huge payout for those affected.

According to Google, any developer who "earned $2 million or less in annual revenue through Google Play between 2016 and 2021" is eligible for reimbursement. Google will contact developers who qualify for payment. Some developers could earn as much as $200,000, according to Hagens Berman, the law firm representing the plaintiffs in the lawsuit.

Based on the payment standards set by Google, it looks like many app developers will receive a share of the $90 million fund. While the minimum developer spend is $250, Hagens Berman estimates that 99% of affected Android app developers meet the requirement of "$2 million or less" to receive some funding from Google. The fees are still high, and Google's track record for supporting Android developers isn't the best, but the fund will at least help developers recoup some of what they've lost over the past five years.

To its credit, cash payments aren't the only thing Google is doing to help its third-party app developers. The Google Play Store will now launch a label called "Indie Apps Corner" that will "showcase independent and small startup developers building unique, high-quality apps." It's unclear exactly how helpful the tab will be, but hopefully it will draw attention to emerging independent apps that might otherwise be lost in the weeds. Google also promised to extend the 15% fee reduction until at least May 2025.

Google’s lawsuit and policy changes come on the heels of similar lawsuits against Apple . Yesterday, Apple announced that it will allow in-app third-party payment systems in South Korea — but only if developers jump through a lot of hoops and still pay Apple a 26% fee (partially reduced from the usual 30% rate).

See To how these lawsuits are leading to policy changes at the big names in the App Store, we appear to be at an inflection point when it comes to the way Google and Apple control their ecosystems. It's unclear what the future of app distribution holds, but with things moving so fast since Epic Games's battle with Apple, it seems like we may find out soon.

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