Hausfield announces proposed $90M settlement with Google Play Store
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Law firm Hausfield has moved for preliminary approval of a $90 million settlement on behalf of developers in a case against Google. The case is an antitrust litigation case and accuses Google of anticompetitive conduct and unlawful practices. The accusations focus specifically on the Google Play Store, where Google requires developers to pay a 30% tax to Google on revenue from paid apps and in-app purchases.
The $90M settlement is on behalf of app developers with less than $2 million in annual sales. As it happens, that’s most of them.
“This settlement is a fitting end to a complex and hard-fought case, and will have a profound impact on the way app developers do business on Google Play for years to come,” said Hausfeld’s Melinda R. Coolidge, in a statement to GamesBeat.
In addition to the $90 million payout to developers, Google confirmed the litigation was the reason for the 2021 launch of a program which let developers pay a reduced 15% service fee on their first $1 million in annual revenues. Google is also maintaining that reduced fee for at least three more years.
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The app store owner is also committing to a series of structural reforms, which include the further development of an “Indie Apps Corner” on the homepage of the Google Play Store. Google is also going to be publishing an annual transparency report going forward.
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