Google will compensate £260 million to resolve a UK class action related to fees on the Play Store.

      Google has consented to pay £260 million to resolve a class action brought by UK app developers, concluding a case that was scheduled to go to trial next month. The agreement was reported on Thursday and amounts to approximately $353 million, according to Reuters.

      Attorneys had earlier assessed the claim at just over £1 billion, seeking compensation for developers who sold apps on the Play Store in the UK. Barry Rodger, an academic specializing in competition law, spearheaded the case as the class representative. His legal team claimed that Google exploited its dominant market position in two ways: by hindering developers from distributing their apps through alternative channels and by imposing an unjust commission, typically set at 30%.

      Google denies any wrongdoing. The settlement is subject to approval by London's Competition Appeal Tribunal, which will review it during a hearing in September. Google has made no admission of liability, and the 19-page agreement notes that the company "believes it has strong defenses to Professor Rodger’s claim." Reuters did not receive an immediate comment from Google regarding the matter, and the company has not publicly addressed the settlement since.

      Bloomberg Law reported that the claimant has alleged, in his own words, that Google imposed "excessive and unfair" commissions on transactions occurring via the Play Store. Rodger referred to the outcome as "a great outcome" for app developers, noting that his court appearance next month has been canceled, and that "if approved, meaningful financial compensation will become available for businesses that could never have taken on a company like Google alone."

      Distribution of the £260 million will be divided into two parts. £160 million will be allocated to developers who sold an app on the Play Store between August 2018 and July 2026, while the remaining £100 million will cover the costs of bringing and funding the lawsuit. Consequently, 38% of the settlement amount will be directed toward the case rather than the claimants. This arrangement for litigation funding is essential in the UK, as no individual developer could bear the costs alone, which Rodger emphasized in his statement.

      Bloomberg Law noted that the claimant and his legal team characterized this settlement as the largest to date under the UK legal framework. The amount from Alphabet translates to around $354 million at the exchange rate on Thursday. The Financial Times reported the same figure of £260 million.

      The settlement amounts to about a quarter of the original claim, with Rodger’s legal team estimating the case to be worth just over £1 billion. Google has consented to pay £260 million, and will not provide anything further.

      Details regarding what a developer might actually receive remain unclear. While the £160 million fund is fixed, the number of developers eligible to claim is uncertain. A higher number of claimants would result in smaller individual payouts, and the tribunal must approve the distribution before any payments can be made.

      The eligibility window is extensive, covering from August 2018 to July 2026, which includes eight years of sales on the Play Store. Any UK business that sold an app during this timeframe falls within the class, regardless of whether they were aware of the case.

      This marks the fourth such action against a major tech firm since the beginning of 2025, according to Reuters. Apple lost a UK lawsuit concerning App Store commissions in October last year. In February, Qualcomm stated that claimants would withdraw a case regarding smartphone chip royalties, while Sony continues to contest a £2.7 billion lawsuit related to PlayStation Store pricing.

      The Competition Appeal Tribunal is now adjudicating grievances within the app economy in the UK. Their structure permits a single class representative, in this instance an academic, to sue on behalf of numerous businesses that would not pursue individual claims. Litigation funders cover the legal expenses and receive a portion of the settlement.

      The commission at the heart of the claim is the focal point of every dispute within the app economy. Google retains up to 30% of every transaction made through the Play Store, a practice have faced scrutiny from developers for a decade, and regulators across three continents are now evaluating whether it is indeed unfair.

      Google is contesting this issue on multiple fronts. It recently concluded its last appeal related to a record 4.1 billion euro fine from the EU regarding Android regulations in July. Following this, competitors began seeking damages after Brussels imposed its first penalty under the Digital Markets Act.

      Additionally, a judge in the US ordered Google in August to cease making it difficult to install competing app stores. As a result, the Play Store has begun to accommodate rival platforms, with a Lisbon-based company called Aptoide being the first to join.

      Separately, Britain’s competition regulator is addressing the commission issue from another angle. In June, it proposed allowing developers to direct users away from Apple and Google’s payment systems. This proposal, rather than the settlement, could potentially alter the 30% commission rate.

      It's worth noting that the settlement does not affect the commission rate itself. Google is permitted to maintain