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Tuesday, August 9, 2022

Google will pay $90 million to app developers to resolve a court dispute

According to court filings, Google has agreed to pay $90 million to Android app developers for generating revenue through their apps and encouraging in-app purchases.

In a report, according to the app developers, Google has leveraged agreements with smartphone makers, technical impediments, and revenue sharing agreements to effectively restrict the app ecosystem and shunt most payments through its Google Play billing system, which has a default service fee of 30 percent.

As part of the proposed settlement, Google will pay $90 million to app developers making less than $2 million in yearly revenue between 2016 and 2021.

According to a blog post by Google, this fund will be open to the vast majority of US developers who have made money through Google Play.

Google will charge developers a 15% commission on the first $1 million in Google Play Store sales each year. From the year 2021 onwards, it has been doing so.

Court approval is needed for any settlement. According to the plaintiffs’ attorney, Hagens Berman Sobol Shapiro LLP, about 48,000 app developers were eligible to apply for the $90 million funds. The minimum award is $250.

The US Congress is currently considering legislation that would require Google and Apple to make sideloading, or downloading software without using an app store, legal. Sideloading is already supported by Google, according to the company. Additionally, it would prevent Google and Apple from requiring app developers to use their payment systems.

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