Key facts
- Google faces a £1 billion lawsuit in London over app store fees.
- The lawsuit represents around 20 million consumers who bought apps or made in-app purchases between 2015 and July.
- Lawyers for the claimant allege Google charged commissions of up to 30% on Play Store purchases.
- Google argues the Android platform offers consumers choice and charges low fees.
- Google's lawyers claim the lawsuit is unfounded and that the Play Store faces strong competition.
Google is facing a significant legal challenge in the UK, with a mass consumer lawsuit worth over £1 billion ($1.33 billion) beginning in London. The case, brought on behalf of approximately 20 million consumers who purchased apps or made in-app purchases through Google's Play Store between 2015 and July, accuses the tech giant of abusing its dominant market position.
Lawyers for the claimant, consumer advocate Liz Coll, allege that Google imposed commissions of up to 30% on app sales, in-app purchases, and subscriptions. They contend that these excessive fees were ultimately passed on to consumers by app developers. As an example, they cited Google's decision to pass on commissions charged when selling YouTube Premium through Apple's App Store.
Google's parent company, Alphabet, is contesting the lawsuit, with a spokesperson stating that the case overlooks the choices available to consumers on the Android platform and that its fees are among the lowest in the market. Google's legal team argued that the Play Store operates under significant competitive constraints from rivals like Apple's App Store and other alternative platforms, deeming the case unfounded.
The trial at London's Competition Appeal Tribunal follows similar legal actions against Apple and Sony concerning their respective app stores. This case also comes after years of regulatory scrutiny and litigation regarding Google's app store practices, including a protracted dispute with "Fortnite" creator Epic Games. In March, Google and Epic reached a global settlement that included Google expanding billing options and reducing developer fees. Last month, Google also settled another lawsuit for £260 million, brought by app developers, without admitting any liability.