Google has agreed to pay £260 million ($354 million) to resolve a major UK class action brought on behalf of app developers over its Play Store practices, according to a settlement agreement published on Thursday. The proposed settlement could end a legal battle that had sought more than £1 billion in compensation. The case, led by competition law professor Barry Rodger, accused Google of using its market power to restrict how developers distributed apps and imposing excessive commissions on sales. The dispute was scheduled for trial next month before London's Competition Appeal Tribunal (CAT), but Rodger's legal team and Google have now reached a settlement, subject to approval by the tribunal.
If approved, £160 million will be distributed among eligible developers who sold apps through the UK Play Store between August 2018 and July 2026. Another £100 million has been earmarked for the costs associated with bringing and funding the litigation. The agreement does not amount to an admission of wrongdoing, as stated in a 19-page settlement document. Google continues to maintain that it has strong defences against the allegations, according to the settlement terms. As per the settlement agreement, Google made no admission of liability or wrongdoing under the agreement, with the company stating it "believes it has strong defences to Professor Rodger's claim."
The case centred on Google's Play Store, where developers were typically charged commissions of up to 30% on sales. Lawyers representing the developers argued that Google's policies limited alternative distribution channels and allowed the company to impose unfair terms on businesses relying on its platform. The claim specifically alleged that Google imposed "excessive and unfair" commissions for transactions through its Play Store, highlighting concerns about how major technology platforms structure their business models and the impact on smaller developers who may not have the resources to pursue legal action individually.
Rodger described the proposed agreement as a significant outcome for developers, particularly smaller businesses that may not have had the resources to pursue a case against a technology giant individually. The settlement adds to growing legal scrutiny of the business models used by major technology platforms. The UK has seen several large competition-related collective claims against technology companies in recent years, including cases involving Apple, Qualcomm and Sony. This marks the fourth such case against a major tech company since the start of 2025, following similar lawsuits against Apple, Qualcomm and Sony. For Google, the agreement removes the immediate prospect of a trial over its Play Store commission structure in the UK, while for developers, the outcome could provide financial compensation while keeping wider questions around app distribution and platform fees firmly in focus.
