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Google offers $90m to small app creators to settle antitrust lawsuit

Around 48,000 small app developers in the US will be eligible to receive payments from the $90 million fund

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Google offers $90m to small app creators to settle antitrust lawsuit

Google has proposed to pay small app developers $90 million. This is to resolve a class-action lawsuit alleging that the company’s Play store practises violated federal antitrust laws.

In the lawsuit, Google was accused of maintaining policies that inadvertently required developers to utilise its Google Play billing system, which for many years imposed a default 30 percent fee on all transactions. In July 2021, Google reduced this price to 15% for the first $1 million in revenue from any app as a concession to smaller developers and in reaction to this lawsuit.

48,000 small app developers in the US will be eligible to receive payments from Google

Around 48,000 small app developers in the US will be eligible to receive payments from the $90 million fund, according to Hagens Berman, the law firm representing the plaintiffs in this class-action lawsuit. According to Hagens Berman, while the minimum amount is $250, some claims might earn as much as $200,000.

“Today, nearly 48,000 hardworking app developers are receiving the just payment they deserve for their work product — something Google sought to profit from, hand over fist,” said Hages Berman managing partner Steve Berman in a press statement.

“With this settlement, developers will have more room to grow and more money in their pockets to promote their hard efforts.”

Google is providing developers with a variety of tiny concessions in addition to the $90 million funding. To “showcase independent and small startup developers building unique high-quality apps,” it is adding a new Indie Apps Corner to its Play Store app. Additionally, it is clarifying language in its Developer Distribution Agreement to make it more clear that developers can contact users to inform them of in-app subscription offers and similar things.

The Google settlement (which must be authorised by the court) comes after Apple gave developers a similar $100 million fund in response to analogous problems with its App Store. That lawsuit, which was also bought by Hagens Berman, featured similar concessions enabling developers to contact consumers and inform them about Apple’s platform’s payment choices.

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