Google has settled a lawsuit over its Play Store and Android app stores with US app developers. Google agreed to pay $90million this month to settle lawsuits with more than 1,000 business app developers who claimed they had been ripped off by the search giant.
To resolve claims that it had a monopoly on the distribution of Android apps and utilized that to impose "exorbitant prices," Google has agreed to pay $90 million. Hagens Berman, a law firm, launched the complaint and will create a fund to compensate developers.
Between August 17, 2016, until December 31, 2021, US developers (about 99 percent of developers on the Play store) with annual earnings of less than $2 million are eligible to receive a payment. The actual amount of compensation will vary depending on each individual situation; the minimum is $250, while those who have been most negatively impacted may receive more than $200,000.
But just a portion of it involves money. Developers often pay a 30% share to the Google Play Store. The business declared last year that it would only take 15% of the first $1 million in app developer earnings each year. Google has reduced the cost of subscriptions to 15%, and even 10% for some apps (ones that distribute e-books, music and video streaming, apps where content accounts for most of the sales). These price cuts will be in effect at least through May 25th, 2025.
Additionally, Google will add a "Indie Apps Corner" to the Play Store's home page that will feature apps created by independent developers and small businesses. It will also be made clear in the revised Developer Distribution Agreement that developers are permitted to contact users directly rather than simply through the app (e.g. through email). Additionally, Google has committed to release annual transparency reports that would explain the reasons why certain apps were taken down and developer accounts were closed.
The deal provided some protection for independent app shops. Automatic updates are now possible in non-Google app shops on Android 12, and they'll be available for at least three more years.
Hagens Berman also brought a comparable action against Apple and obtained a $100 settlement with comparable terms last year (15 percent commission for the first million, the ability to contact users directly and so on).
