Google fights £1 billion UK lawsuit over app store fees in latest Big Tech case

The logo of Google is seen outside Google Bay View facilities during the Made by Google event in Mountain View, California, US, August 13, 2024. (Image: Reuters/Manuel Orbegozo)

Google was accused of abusing its dominance to levy excessive commissions on app developers, as a mass consumer lawsuit worth over £1 billion ($1.33 billion) began in London on Tuesday.

The case — brought on behalf of around 20 million consumers who bought apps through Google’s Play Store, or paid for in-app purchases and subscriptions between 2015 and this July — is the latest brought in ⁠Britain ​against Big Tech.

Lawyers representing consumer advocate Liz Coll, who is leading the claim, say Google used its dominant position to charge commissions of up to 30% on purchases of apps through its Play Store, as ​well ​as on in-app purchases and subscriptions.

They ⁠argue that those excessive commissions were passed on by app developers to consumers, citing as an example ‌that when Google sold YouTube Premium through Apple’s App Store it also decided to pass on the commission it was charged.

But Google’s parent Alphabet is fighting the lawsuit, which a spokesperson said ignores the degree of choice the Android platform gives consumers and that it charges “some of the lowest fees in the ⁠market”.

The tech giant’s ⁠lawyers, who said Coll’s case was unfounded, argued the Play Store “faces strong competitive constraints both on the ⁠developer and ‌consumer sides”, including from Apple’s App Store and other ​alternative platforms.

The trial at London’s Competition ‌Appeal Tribunal follows similar cases against Apple and Sony over their App Store and PlayStation Store, both of which cited ‌commissions of up ​to 30%.

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Coll’s ​case also ​comes after years of regulatory scrutiny and litigation over Google’s app store practices, including a long-running battle ​with “Fortnite” maker Epic Games, whose London lawsuit was ⁠due to be heard alongside Coll’s.

In March, Google and Epic reached a worldwide settlement under which Google said it would expand ‌billing options ⁠and cut developer fees.

Last month, Google also settled another lawsuit for £260 million, which was brought on behalf of ​app developers, without making any admission of liability or wrongdoing.