Google settles US developers for $90 million over abuse of power case

Google will pay most US developers a total of $90 million. That is part of a settlement the company is reaching with the developers after the developers complained about alleged abuse of power within the Google Play Store.

Only American developers who have had less than $2 million in annual revenue through the Play Store since 2016 are eligible for compensation. Google claims that this concerns the vast majority of developers. These developers will be notified by the company itself if they can get money, if the US court approves the settlement.

Google pays American developers after they sued the company for abuse of power. The developers say that Google has banned competing app stores from its platform, among other things, and as a result forced developers to pay ‘exorbitant’ fees. A law firm that assists developers says some developers can get well over $200,000. The minimum amount, according to this office, is $250 and 48,000 developers would be eligible.

In addition to the fund, Google pledges a number of measures to “help developers communicate with customers and innovate.” That is how the company mentions the reduced commission that developers have to pay on the first million dollars of turnover. Since 2021, developers pay 15 percent commission on the first million, instead of 30 percent. Above that million dollars, developers pay as much as 30 percent. Google now agrees to continue with this reduced commission.

The company will also adjust the agreements it has with developers, which should make it clearer how developers can communicate with customers. Google also promises not to roll back changes in Android 12 that make it easier to use other app stores. In addition, there will be an Indie Apps Corner in the American Play Store that should give smaller developers more attention.

The Settlement Amounts according to Hagens Berman Law