Approximately 48,000 app developers will be eligible for compensation if approved.

(Photo: SOPA Images/Getty Images)

In an attempt to settle the class action lawsuit and avoid years of litigation, Google is offering $90 million in compensation to Android app developers.

The lawsuit was filed in August 2020 and accused Google of improperly achieving and maintaining a monopoly in the US market over Android operating system distribution fees and in-app product transactions. Google has also been accused of using its power to “prevent competition that would benefit all Android app developers”.

The US developers are represented by Hagens Berman Sobol Shapiro LLP, which filed a similar class action lawsuit against Apple last year.

“Today, nearly 48,000 hard-working app developers can get the fair compensation they deserve for the product of their work,” said Steve Berman, managing partner and co-founder of Hagens Berman. “Based on the settlement agreement we have drafted, some of the developers are likely to receive payments of hundreds of thousands of dollars, upwards of $200,000 or more.”

If the court approves the proposed settlement, the minimum payment each developer will receive will be $250. Google Vice President of Government Affairs and Public Policy Wilson White said the $90 million fund will support any US developer who earns $2 million or less in annual revenue through Google Play between 2016 and 2021. All developers who are eligible to receive money will be notified.

White points to changes recently made by Google that “help developers innovate and connect with their users.” These include reducing the app commission rate from 30% to 15% for the first million dollars in annual revenue generated through the Play Store. The Developer Distribution Agreement is also being revised to make it clear that developers can communicate with users outside of their apps using information obtained in the app.

We can also expect Google to create a “Independent Apps Corner” that will appear in the apps tab on the main page of Google Play. It will showcase apps from independent developers and small startups that offer what Google considers “unique, high-quality apps.”

What happens next is up to the US District Court for the Northern District of California, but the preapproval petition says: “Under the proposed settlement, developers should receive significant cash payments along with structural benefits. that Google Play Store will improve. in the future and help developers better monetize their applications and embedded products.”

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Source: IXBT

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