Google is preparing to defend a £1.2bn lawsuit in London this week, facing claims that millions of UK consumers were overcharged for Android app downloads over the past decade. The class action, financed by Fortress Investment Group and backed by Abu Dhabi's Mubadala, alleges Alphabet levied "excessive" charges on Google Play Store software since 2015. About 20 million consumers could receive roughly £60 each on average if successful.
Google denies anti-competitive conduct, contending Android offers more choice and the Play Store protects users from security threats. The legal action follows a tribunal ruling last year finding Apple imposed unfair App Store charges. That case is now being appealed.
In August, Google agreed to pay £260mn to settle a related UK developer case. The claim is led by consumer policy specialist Liz Coll, who argues developer commissions have been passed to users. In 2023, Google lost an Epic Games case in California and paid $700mn to settle a multi-state antitrust lawsuit.
Coll seeks compensation for subscriptions and in-app purchases. The £1.2bn figure estimates possible damages based on the Apple ruling. Google notes it has reduced commissions over time and that most Play Store apps remain free.
Source: Financial Times Companies · Summarized by HeadlinesBriefing