Google faces UK trial over £1.2bn Play Store consumer claim

London trial tests Play Store commissions

A seven-week trial is due to begin in London this week unless a last-minute settlement is reached. The class action seeks up to £1.2bn for about 20 million consumers and examines whether Google Play Store commissions on Android downloads and purchases since 2015 led to higher prices.

Claimants argue that Google restricted competition and charged developers fees reaching 30 percent, which were passed on to users through higher prices for apps, subscriptions and in-app purchases. The case is backed by Fortress Investment Group and Mubadala and could result in average payouts of about £60 per affected consumer if successful.

Google rejects the allegations

Google says it has not engaged in anti-competitive conduct. It argues that Android gives users and developers more choice than rival mobile ecosystems and that the Play Store helps protect customers from cyber security risks, scams and fraud.

Any eventual award would depend on how much of the alleged overcharge the tribunal considers was passed from developers to consumers. Google also maintains that most Play Store apps are free and only a small share of the largest developers pay fees. Consumer policy specialist Liz Coll says many users are unaware of the scale of mobile-service commissions and that the case could give consumers a route to redress.

Case adds to broader antitrust pressure

The UK action follows a separate August settlement in which Google agreed to pay £260mn to thousands of software developers over Play Store commissions. It also comes after the Competition Appeal Tribunal found in a similar case that Apple had imposed unfair charges through its App Store. Apple is challenging that ruling, with the Court of Appeal due to hear its case next year.

In the United States, a San Francisco judge ordered Google to open Android to rival app marketplaces and payment systems after a 2023 case brought by Epic Games. Google and Epic later agreed to settle the dispute in March this year. Separately, Google paid $700mn in 2023 to settle an antitrust lawsuit by multiple states that alleged it shut out rival payment systems and overcharged customers.