Google agreed to pay $ 90 million to settle a lawsuit in the United States accusing it of having a monopoly on distributing Android apps and using it to charge “exorbitant fees.” The lawsuit was brought by the law firm Hagens Berman, which will set up a fund to compensate the developers.
US developers with annual earnings of less than $ 2 million between August 17, 2016 and December 31, 2021 (about 99% of developers on the Play Store) are eligible for compensation. The exact compensation will vary on a case-by-case basis, the minimum being $ 250, while those who have been most affected can exceed $ 200,000.
But money is only part of it. The Google Play Store normally receives a 30% cut from developers. Last year, the company announced that it will only raise 15% of the first million dollars a developer earns through app sales each year. Google has also lowered the share on subscriptions to 15%, even 10% for select apps (those that distribute e-books, music and video streaming, apps where content accounts for the majority of sales). These reductions will last at least until May 25, 2025.
Additionally, Google will introduce an “Indie Apps Corner” on the Play Store home page, which will highlight apps from independent developers and startups. Additionally, the developer distribution agreement will be updated to clarify that developers can contact users directly and not just through the app (e.g. via email). Google has also agreed to publish annual transparency reports, which will detail why apps were removed and why developer accounts were closed.
Third-party app stores have gotten some protection thanks to this deal. Android 12 has allowed non-Google app stores to perform automatic updates, this will remain in place for at least three years.
Hagens Berman also led a similar lawsuit against Apple and won a $ 100 deal last year, which included similar terms (15% commission for the first million, ability to contact users directly, and so on).
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