Google lawsuit: Google to pay $90 million to settle lawsuit with app developers

Alphabet Inc Google agreed to pay $90 million to settle a legal battle with application developers for the money they earned by creating applications for android smartphones and for encouraging users to make in-app purchases, according to a lawsuit.

The developers of the app, in a lawsuit filed in San Francisco federal court, accused Google of using agreements with smartphone manufacturers, technical barriers and revenue-sharing agreements to effectively shut down the app ecosystem and make most payments through its default Google Play payment system. service fee 30%.

As part of the proposed settlement, Google said in a blog post that it will invest $90 million in a fund to support app developers with annual revenues of $2 million or less in 2016-2021.

“The vast majority of US developers who have earned income through Google Play will be eligible to receive money from this fund if they choose to,” Google said in a blog post.

Google said it will also charge developers a 15% commission on their first million Google Play Store revenue each year. This will start in 2021.

The court must approve the proposed settlement.

Discover stories that interest you

According to Hagens Berman Sobol Shapiro LLP, which represented the plaintiffs, 48,000 app developers were eligible to apply for the $90 million fund, with a minimum payout of $250.

Last year, Apple Inc agreed to ease App Store restrictions on small developers in a group deal. He also agreed to pay $100 million.

In Washington, Congress is considering a bill that would require Google and Apple to allow unpublished app downloads, or the practice of downloading apps without using the app store. Google says it already allows you to upload unpublished files. It will also prevent them from requiring app providers to use Google and Apple payment systems.

Stay on top technology as well as startup news it is important. subscribe to our daily newsletter with the latest and must-read tech news delivered straight to your inbox.