Google pays over $100 million to avoid legal battle with developers

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Google pays over $100M to avoid legal battle with developers

With this agreement, Google wants to avoid lawsuits from independent developers.

Google has agreed to set up a US$90 million (approximately C$116 million) fund to be given to smaller app developers to settle abuse of dominance lawsuits to impose its terms.

The fund is aimed at developers who have earned less than two million US dollars (2.6 million Canadian dollars) per year on the group's application store, Google Play, between 2016 and 2021, according to what the Alphabet subsidiary said on its website Thursday evening.

According to the firm Hagens Berman, which represents the plaintiff, nearly 48,000 app developers are affected.

Google has also agreed to continue to offer a 15% commission on Google Play subscriptions on the first million in revenue each year, as it does; offered last year, instead of the industry standard 30%.

A Google Play store page showing several free games

The group will also modify its standard contract to clarify that developers can use user contacts retrieved from Google Play to reach them outside of the application store to offer them their services, at a lower cost, on another app store or on their own site.

The Californian company also plans to create a new category highlighting apps for x27; independent publishers.

This agreement allows the parties to move forward and avoid years of uncertain and worrying legal proceedings, Google points out.

It must still be approved by a judge.< /p>

A class action lawsuit was filed in 2020, with plaintiffs accusing Google of violating competition laws and penalizing developers by banning them from offering their apps on other online stores.

App makers have waged a rebellion against tech giants Google and Apple in recent years, which they blame to take advantage of their dominant position on mobiles with their Android and iOS operating system to impose rules that they consider unfair.

Apple had accepted the ;last year to pay 100 million US dollars (approximately 129 million Canadian dollars) to developers in a deal that seems lable to that advertised by Google.

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