Google Settles Proceedings with US App Developer for $ 90 Million

Google Settles Proceedings with US App Developer for $ 90 Million

Google has agreed to monopolize the distribution of the Android app and pay $ 90 million to settle the proceedings in the United States for using it to charge “exorbitant fees”. The proceedings were filed by Hagens Berman, a law firm that establishes a fund to indemnify developers.

US developers with annual revenues of less than $ 2 million between August 17, 2016 and December 31, 2021 (estimated 99% of Play Store developers) are eligible to receive compensation. Exact compensation varies on a case-by-case basis, with a minimum of $ 250, but the most affected can exceed $ 200,000.

But money is only part of it. The Google Play store typically receives a 30% reduction from developers. Last year, the company announced that it would only recover 15% of the first $ 1 million developers earned each year through the sale of apps. Google has also reduced subscription prices to 15%, with some apps (ebooks, music, video streaming apps, and content-dominated apps) down to 10%. These reductions will continue until at least May 25, 2025.

In addition, Google will introduce an “indie app corner” on the Play Store homepage. This section introduces independent developers and startup apps. It also renews the developer distribution agreement, allowing developers to contact users directly (via email, etc.) as well as the app. Google has also agreed to publish an annual transparency report detailing why the app was removed and why the developer account was closed.

Thanks to this settlement, third-party app stores have been protected to some extent. On Android 12, it was possible to perform automatic updates in app stores other than Google. This is valid for at least 3 years.

Hagens Berman led a similar proceeding against Apple, winning a $ 100 settlement last year featuring similar terms (15% for the first million fees, the ability to contact users directly, etc.). ..

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