Google End up Play Store lawsuit, as it Agrees to Pay $90 Million to App Developers
Alphabet Inc's Google has agreed to an agreement that specifies paying $90 million to end the legal fight with app developers over the money they earned making apps for Android smartphones and for alluring the users to opt for in-app purchases, as per the court filing.
HIGHLIGHTS:
- Google to pay $90 million to end up the legal fight with app developers
- Google is suspected for exploitation of shutting down the app system.
- Around 48,000 app developers are eligible to apply for the $90 million funds.
The app developers, a lawsuit filed in federal court in San Francisco, have suspected Google. It was for the exploitation of agreements with smartphone manufacturers, technical barriers, and revenue sharing agreements to effectively shut down the app system and shunt most of the payments through its Google Play billing system with a default service charge of 30%.
Google has mentioned in a blog spot, that as part of the proposed agreement of settlement, it would put a total of $90 million in a fund to support the app developers who have made $2 million or less in annual revenue from 2016-2021.
'A vast majority of U.S. developers who have generated revenue through Google Play will be eligible to receive money from this fund, if they choose,' as mentioned in the blog spot by Google.
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Google has also said it would also charge developers a 15% commission on their first million in revenue from the Google Play Store each year. It started doing this in 2021, itself.
It is expected that the court must approve the planned settlement for smooth functioning.
Around 48,000 app developers are likely to be eligible to apply for the $90 million funds. Along with this, the minimum calculated around $250, according to Hagens Berman Sobol Shapiro LLP, the one who represented the plaintiffs.
Apple agreed last year to keep the App Store restrictions loose for the small developers, striking the deal in a class action. It also got agreed to pay $100 million.
In Washington, Google and Apple need to permit sideloading or downloading apps without an app store as Congress is considering legislation where it would require both the companies. Google has said that it has already allowed sideloading. It would even bar them from demanding that app providers use Google and Apple's payment systems.
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