Big Tech case: Google faces £1 billion consumer lawsuit in UK over play store fees

Google has been accused of misusing its dominance to impose excessive commissions on app developers, as a mass consumer lawsuit worth more than £1 billion ($1.33 billion) ​started in London on Tuesday (October 7). The claim is brought on behalf of about ‌20 million consumers who bought apps using Google's Play Store, or paid for in-app purchases and subscriptions between 2015 and this July. It marks the latest case in Britain against Big ​Tech.

Lawyers for consumer advocate Liz Coll, who is leading the action, stated that ​Google abused its dominant position by charging commissions of up ⁠to 30 per cent on Play Store app purchases, in-app purchases and subscriptions. They argue that app developers passed these excessive commissions on to consumers. As an example, they point to Google's own YouTube Premium: when it was sold through Apple's App Store, Google chose to pass on the commission it was charged.

Competition from Apple's App Store

However, Alphabet, Google's ​parent company, is fighting the lawsuit. A spokesperson stated that the company has ignored the ​degree of choice the Android platform gives consumers and that it charges "some of the lowest fees ‌in ⁠the market". The tech giant's lawyers argued that the Play Store experienced strong competitive constraints both on the developer and consumer sides from Apple's App Store and other alternative platforms.

The trial at London's Competition Appeal Tribunal follows similar cases against Apple and Sony over their App Store and PlayStation Store, both of which involved commissions of up to 30 per cent. Coll's claim also comes after years of regulatory scrutiny and litigation over Google's app store practices, including a long-running dispute with "Fortnite" maker Epic Games, whose London lawsuit was due to be heard alongside hers.

In March, Google and Epic reached a worldwide settlement under which Google said it would expand billing options and cut developer fees. Last month, Google also paid £260 million to settle another lawsuit, brought on behalf of app developers, without admitting liability or wrongdoing.