UK court approves 260m pound Google settlement

The Competition Appeal Tribunal has approved a 260 million pound settlement in a class action against Alphabet, the parent company of Google. This represents the largest payout for class members ever sanctioned by the court, although it falls well short of the 1.04 billion pound valuation estimated when the claim was lodged in September 2024. The legal action, brought by Geradin Partners, alleged that Google abused its dominant market position by levying excessive commissions on Play Store transactions for Android customers.

Under the terms of the agreement, a 160 million pound fund will be distributed directly to eligible developers, including sole traders and small and medium enterprises. The compensation amount for each affected developer is calculated based on their qualifying sales on the Play Store since August 2018. The remaining 100 million pound covers associated legal expenses, including costs for the litigation funder and insurers. Damien Geradin, founding partner of the firm representing the claimants, stated that the judgment confirmed the settlement served the interests of thousands of UK businesses.

Google expressed satisfaction at reaching an agreement to conclude the litigation, subject to court approval, while reaffirming its commitment to supporting the UK developer community. This case forms part of a broader trend of competition class actions against major technology firms in the UK. Apple recently faced similar claims regarding App Store fees affecting nearly 20 million British users. The UK collective action regime, introduced in 2015, has facilitated a surge in such cases, providing a route to redress for consumers and businesses unable to litigate individually.