Google has agreed to pay $90 million to small app developers to settle allegations that its Play Store policy violates antitrust laws.
App developers accused Google of using a contract with a smartphone manufacturer to force payments through Google Play’s billing system, which has a default service charge of 30%.
On Thursday, the tech giant announced it would invest $90 million in a fund to support app developers with annual revenue of $2 million or less from 2016 to 2021.
“Most US developers who make money through Google Play are eligible to receive money from this fund if they choose,” Google said in a blog post.
The company also said it would charge developers a 15% annual fee for the first $1 million in revenue from the Google Play store. Started this in 2021.
“Today, nearly 48,000 hard-working app developers are getting the just rewards they deserve for their work, which is what Google is trying to do for profit,” said Haigs Berman, his partner Steve Bernan said in a statement.
“This reconciliation gives developers more room to grow and more money to support their hard work.”
The minimum payment is $250 and some claimants receive up to $200,000. The proposed settlement still needs to be approved by the court.
Last year, Apple agreed to relax App Store restrictions on small developers, settle a similar class-action proceeding and pay $100 million.
This is just the beginning, as the US and EU governments are trying to rein in Big Tech through pending legislation.
In the United States, the proposed Open Markets for Applications Act requires Apple and Google to install applications without using the app store, which is called sideloading. Google says sideloading is already allowed.
The EU Digital Markets Law may also require transfer if the European Parliament gets final approval in 2023.
Source: Metro
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