The app developers claimed in a lawsuit filed in federal court in San Francisco that Google was closing the app ecosystem and redirecting most payments through its Google Play billing system with a default service fee of 30% by using agreements with smartphone manufacturers, and technical barriers, and revenue sharing agreements.
Google stated in a blog post that as part of the proposed settlement, it would invest $90 million in a fund to assist app developers who earned $2 million or less in annual revenue from 2016 to 2021.
According to Google’s blog post, “the vast majority of U.S. developers who earned money through Google Play will be eligible to receive money from this fund if they choose.”
Additionally, Google said it would keep charging a 15% commission to developers who earn $1 million or less in annual revenue from the Google Play Store. In 2021, it first started doing this.
The proposed settlement must be accepted by the court.
The $90 million funds was open to 48,000 app developers, and the minimum payout is $250, according to Hagens Berman Sobol Shapiro LLP, who acted as the plaintiffs’ legal counsel.
By reaching a settlement in a class action, Apple Inc. agreed last year to relax the restrictions on small developers using the App Store. Additionally, $100 million was agreed upon.
Congress in Washington is debating legislation that would compel Google and Apple to permit sideloading, the act of downloading apps devoid of the aid of an app store. Additionally, it would prevent them from requiring app developers to use Apple’s and Google’s payment systems.
