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Hausfeld Announces $90 Million Settlement in Groundbreaking Antitrust Class Action Against Google Regarding the Google Play Store

·4 min read
Hausfeld
Hausfeld

WASHINGTON, July 01, 2022 (GLOBE NEWSWIRE) -- Developer Plaintiffs moved for preliminary approval of a proposed $90 million settlement with Google today in In re Google Play Store Antitrust Litigation, one of the first cases filed in a wave of antitrust litigation that has disrupted the tech industry. The settlement resolves a monopolization case against Google regarding its alleged anticompetitive conduct and unlawful practices related to the Google Play Store, including Google’s requirement that the app developers who create, develop, and maintain the apps distributed on the Google Play Store pay a 30% tax to Google on revenue earned from paid apps and in-app products. The settlement was reached on behalf of app developers with $2 million or less in annual sales, which includes nearly all U.S. developers earning revenue in the Google Play Store.

In addition to paying $90 million in monetary relief directly to developers, Google has acknowledged that the litigation was a catalyst for its 2021 launch of a program where developers pay a reduced 15% service fee on their first $1 million in annual revenues and agreed to maintain that reduced fee tier for at least three more years. Google has also committed to a series of structural reforms, including developing an “Indie Apps Corner” on the homepage of the Google Play Store and publishing an annual transparency report.

Melinda R. Coolidge, Hausfeld’s U.S. Managing Partner, commented, “This settlement is a fitting end to a complex and hard-fought case, and will have a profound impact on the way app developers do business on Google Play for years to come.”

Plaintiff François Einwaechter, Director of Peekya App Services, Inc., remarked, “I am proud of our agreement with Google. We brought this case to make the market more competitive, to preserve incentives for app developers, and to lower costs, and we succeeded in achieving all of those goals. The settlement puts money back in the hands of the people who make the Google Play ecosystem work—the app developers who work every day to produce and distribute great products. I am particularly pleased with the changes Google has agreed to make to its developer agreements, and I truly believe that more developers will be able to bring their innovative apps to the world as a result of this settlement.”

Plaintiff Dan Scalise, founder of Rescue Pets, expressed similar sentiment, “As an entrepreneur starting out with a small business, the benefits this settlement provides to app developers are substantial and meaningful and they will create opportunities for app developers to improve the quality of their products and services, benefiting our customers and players with quality and choice. I am proud to have been a part of achieving this result on behalf of app developers like Rescue Pets. Hopefully this result reminds others out there that our justice system can work, and even a company as powerful as Google can be held accountable and be made to make meaningful changes to their business for the benefit of the developers that support it.”

Hausfeld serves as co-lead counsel for the developer class along with Hagens Berman Sobol Shapiro and Sperling & Slater. Hausfeld attorneys working on the case include Melinda R. Coolidge, Bonny E. Sweeney, Katie R. Beran, Kyle G. Bates, and Yelena W. Dewald.

CONTACT:

Deborah Schwartz 
Media Relations 
240 355-8838 
deborah@mediarelationsinc.com

About Peekya

Peekya offers a new and innovative way for people to connect while traveling for business or leisure before or even after arriving at their event or destination. Unlike other apps, which limit the search function based on current location, Peekya allows users to peek into the future days, weeks, or even months in advance of a trip, meet like-minded people that share the same interest as you do and plan and connect ahead. For more information, including how to get the app and invite your friends to join, please visit https://peekya.com/.

About Rescue Pets

Rescue Pets offers games you can play for free to help save real animals. Rescue Pets’ mission is to improve the lives of animals everywhere. The original Rescue Pets game allows you to run a virtual animal shelter, improving the lives of the virtual animals in your care and personalizing your own Corgi companion with outfits. Rescue Pets also recently released Rock Miner, where you can crush rocks and stones, explore mines, save virtual dogs, and become a Corgi mining king. Rescue Pets donates a share of its profits to animal shelters to help save real pets’ lives. To download either app and play today, please visit https://www.scalisco.com.

About Hausfeld

Hausfeld is a leading litigation law firm with offices in Boston, New York, Philadelphia, San Francisco, and Washington, D.C., as well as in the UK and continental Europe. In the last decade, Hausfeld has won landmark trials, negotiated complex settlements, and recovered billions of dollars for clients both in and out of court. Hausfeld lawyers consistently apply forward-thinking ideas and creative solutions to the most vexing global legal challenges faced by clients. As a result, the firm’s litigators have developed numerous innovative legal theories that have expanded the quality and availability of legal recourse for claimants around the globe. Visit https://www.hausfeld.com for more information.