Hausfield announces proposed $90M settlement with Google Play Store

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Law firm Hausfield has sought preliminary approval for a $90 million settlement on behalf of the developers in a case against . The case is an antitrust litigation and accuses Google of anti-competitive behavior and illegal practices. The charges relate specifically to the Google Play Store, where Google is forcing developers to pay a 30% tax to Google on revenue from paid apps and in-app purchases.

The $90 million settlement is on behalf of app developers with annual revenue of less than $2 million. It happens to be most of them.

"This settlement is the fitting end to a complex and hard-fought affair, and will have a profound impact on how app developers do business on Google Play for years to come," said Melinda R Hausfeld's Coolidge, in a statement to GamesBeat.

In addition to the $90 million payout to developers, Google has confirmed that the litigation is behind the 2021 launch of a program allowing developers to pay a reduced service fee of 15% on their first million dollars in annual revenue. Google is also keeping these fees reduced for at least three years. .

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The App Store owner is also embarking on a series of structural reforms, which include the further development of a "" on the Google Play Store homepage. Google will also publish an annual transparency report in the future.

Anticompetitive app stores are being sued all over the world

This is not the first lawsuit to address anti-competitive behavior. Back in May 2022 Apple filed a lawsuit against competitor Cydia. The rival app store pointed to a series of software updates between 2018 and 2021 that it said were "overt" acts that hurt iOS developers, like itself.

The 30% tax is also a sticking point. In 2020, Fortnite developer Epic Games sued Apple over the removal of Fortnite from the Apple App Store. Fortnite used an in-app purchase method that bypassed Apple and its 30% tax, leading to Apple removing Fortnite from the platform.

This specific case didn't quite happen.

The different pursuits are not quite the same. They all focus on slightly different things and aim for different results. But the similarities are striking. Apple practically won a few years ago. This time Google lost. In both cases, this 30% tax was a key factor.

The question now is whether or not this lawsuit against Google paves the way for a new lawsuit against Apple. Or if Apple drops 30% to 15% for apps with annual revenue under $1 million will protect it.

CAF sees Google settlement as an empty gesture

The Coalition for App Fairness is unhappy with Google's deal. The group came together to fight for fairer practices for developers on the Play Store and Apple App Store.

Originally a coalition of 13 companies, including Epic Games, CAF has grown to over 40 members as of 2020. CAF is quick to point out that this rulebook doesn't change enough for Play Store developers.

“This deal does nothing to open up the mobile app ecosystem to competition or address the underlying problem. Even if approved, Google would retain control over how consumers obtain apps and perform purchases in these apps, leading to high fees and less innovation," said Rick VanMeter of the Coalition for App Fairness. "These regulations make it clear that policy solutions such as the Open App Markets Act would help ensure a free and fair mobile application ecosystem."