Google has been accused of abusing its dominance to levy excessive commissions on app developers, as a mass consumer lawsuit worth over £1 billion began in London.
The case - brought on behalf of around 20 million consumers who bought apps through Google's Play Store, or paid for in-app purchases and subscriptions between 2015 and this July - is the latest brought in Britain against Big Tech.
Lawyers representing consumer advocate Liz Coll, who is leading the claim, say Google used its dominant position to charge commissions of up to 30% on purchases of apps through its Play Store, as well as on in-app purchases and subscriptions. They argue that those excessive commissions were passed on by app developers to consumers, citing as an example that when Google sold YouTube Premium through Apple's App Store it also decided to pass on the commission it was charged.
But Google's parent Alphabet is fighting the lawsuit. A spokesperson said the claim ignores 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, who said Coll's case was unfounded, argued the Play Store "faces strong competitive constraints both on the developer and consumer sides," including 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 cited commissions of up to 30%. Coll's case also comes after years of regulatory scrutiny and litigation over Google's app store practices, including a long-running battle with "Fortnite" maker Epic Games, whose London lawsuit was due to be heard alongside Coll's.
In March, Google and Epic reached a worldwide settlement under which Google said it would expand billing options and cut developer fees - a deal that was seen as a significant concession but which has not stopped the wider wave of litigation.
The case is part of a broader global assault on the app-store business model that has made Apple and Google tens of billions of dollars. Regulators and courts on multiple continents are now asking the same question: whether the 30% commission that became the industry standard in the early smartphone era can still be justified - or whether it is, as the claimants allege, the product of monopoly power passed on to ordinary consumers in higher prices.
For the 20 million UK consumers represented in the claim, the stakes are tangible: if Coll succeeds, it could mean compensation for years of allegedly inflated app prices - and a fundamental reshaping of how apps are sold on Android phones.