A significant legal battle has commenced in London, as a case seeking £1.2 billion in damages from Google over alleged excessive app store fees is now underway. This class action lawsuit, initiated on behalf of approximately 20 million consumers and businesses in the UK, focuses on purchases made through the Google Play store or via Android devices between October 1, 2015, and July 31, 2026.
Developer fees
The lawsuit encompasses a variety of transactions, including paid applications, subscription services, upgrades for enhanced features, and in-game purchases. Plaintiffs’ attorneys argue that Google’s standard fee of around 30 percent on these digital purchases has unfairly inflated costs for consumers, effectively passing this burden onto them in the form of higher retail prices.
In response, Google contends that it maintains some of the lowest fees in the industry and asserts that the marketplace is competitive. The tech giant firmly denies possessing the market power necessary to exert excessive control, stating in court documents that it does not dominate the sector for facilitating digital content transactions between developers and consumers.
‘Effective duopoly’
The Competition and Markets Authority (CMA) highlighted last year that Google and Apple operate as an “effective duopoly” in the mobile operating systems market. This designation has significant implications, as it allows for targeted regulatory interventions aimed at their business practices. In a related case, Apple faced a similar class-action lawsuit in the UK, where it was accused of imposing “excessive and unfair” fees on software downloaded from its App Store. The Competition Appeal Tribunal (CAT) ruled against Apple, determining that it had abused its dominant position from October 2015 until the end of 2020, resulting in potential damages for an estimated 36 million consumers amounting to around £1.5 billion.
