Google was accused of overcharging Android app developers for over a decade, leading to inflated prices on the Play Store for about 20 million UK customers.
The US giant’s 30% levy for digital purchases violated competition law and consumers affected since 2015 could be in line for a £1.2bil (US$1.6bil or RM6.5bil) payout, lawyers representing them said on Oct 6 at the start of a class action case at the Competition Appeal Tribunal in London.
"Free of competitive shackles, Google has exploited its market strength to extract unfair prices to the detriment of users and generated extraordinary returns for almost two decades,” the lawyers said in court filings.
Google has consistently denied that it has engaged in any anti-competitive conduct and called for the claim to be dismissed.
"Dominance requires market power, lawyers for Google said in filings prepared for the trial. "Google is not dominant in the market for the facilitation of digital content transactions between developers and consumers.
App stores have attracted intense scrutiny from regulators across the world. Apple Inc’s platform has also been the target of a European Union (EU) investigation and a US lawsuit from developer Epic Games. The UK’s Competition and Markets Authority found that Apple and Google held an effective duopoly in the mobile platforms market and put in place measures that place guardrails for how powerful tech firms behave.
The EU handed a €1.8bil (US$2bil or RM8.17bil) fine against Apple over allegations it stifled competition in 2024, and then a later penalty of €500mil (RM2.29bil) under the bloc’s Digital Markets Act.
Google’s Play Store was fined €430mil (RM1.95bil) this year for restricting app developers from freely communicating and directing users to cheaper alternative purchase channels.
"Android gives people more choice than any other mobile platform in deciding which apps and app stores they use, with Play offering some of the lowest fees in the market,” Google said ahead of the London class action trial.
The Oct 6 claim follows a significant win for consumers last year in which the CAT ruled that Apple abused its dominant position to charge excessive commission from app developers. That case will be heard at the Court of Appeal next year. – Bloomberg
