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Saturday, December 10, 2022

Google to pay US$90 million to settle legal battle with app developers

WASHINGTON: Alphabet’s Google has agreed to pay US$90 million to settle a legal battle with app developers to build apps for Android smartphones and entice users to make in-app purchases, a court has said. According to the filing.

App developers, in a lawsuit filed in federal court in San Francisco, accused Google of using agreements, technical hurdles and revenue sharing agreements with smartphone makers to effectively shut down the app ecosystem and prevent default. Most payments can be decoupled from your Google Play billing system. Service charge 30 percent.

As part of the proposed settlement, Google said in a blog post that it would put US$90 million into a fund to support app developers who earned US$2 million or less in annual revenue from 2016-2021.

“Most US developers earning revenue through Google Play will be eligible to receive funding from this fund, if they so choose,” Google said in a blog post.

Google said it would also continue to charge a 15 percent commission from developers who make US$1 million or less annually from the Google Play Store. It started doing so in 2021.

The court must approve the proposed settlement.

According to Hagens Berman Sobol Shapiro LLP, representing the plaintiffs, potentially 48,000 app developers were eligible to apply for the US$90 million fund, and the minimum payout is US$250.

Apple last year agreed to loosen App Store restrictions on smaller developers, a deal in a class action. It also agreed to pay US$100 million.

In Washington, Congress is considering legislation that would require Google and Apple to allow sideloading, or the practice of downloading apps without using the App Store. It would also prevent them from requiring that app providers use payment systems from Google and Apple.

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