Google fights £1 billion UK lawsuit over app store fees in latest Big Tech case

Google Battles £1 Billion UK Lawsuit Alleging Excessive App Store Fees

Overview of the UK Lawsuit Against Google

Allegations of Excessive Commissions

LONDON, Oct 6 (Reuters) - Google was accused of abusing its dominance to levy excessive commissions on app developers, as a mass consumer lawsuit worth over £1 billion ($1.33 billion) began in London on Tuesday.

The case — brought on behalf of around 20 million consumers who bought apps through Google's Play Store, or paid for in-app purchases and subscriptions between 2015 and this July — is the latest brought in Britain against Big Tech.

Details of the Claims

Lawyers representing consumer advocate Liz Coll, who is leading the claim, say Google used its dominant position to charge commissions of up to 30% on purchases of apps through its Play Store, as well as on in-app purchases and subscriptions.

They argue that those excessive commissions were passed on by app developers to consumers, citing as an example that when Google sold YouTube Premium through Apple's App Store it also decided to pass on the commission it was charged.

Google's Response to the Lawsuit

Defense Arguments

But Google's parent Alphabet is fighting the lawsuit, which a spokesperson said ignores the degree of choice the Android platform gives consumers and that it charges "some of the lowest fees in the market".

The tech giant's lawyers, who said Coll's case was unfounded, argued the Play Store "faces strong competitive constraints both on the developer and consumer sides", including from Apple's App Store and other alternative platforms.

Context and Related Cases

Similar Lawsuits and Regulatory Scrutiny

The trial at London's Competition Appeal Tribunal follows similar cases against Apple and Sony over their App Store and PlayStation Store, both of which cited commissions of up to 30%.

Coll's case also comes after years of regulatory scrutiny and litigation over Google's app store practices, including a long-running battle with "Fortnite" maker Epic Games, whose London lawsuit was due to be heard alongside Coll's.

Settlements and Recent Developments

In March, Google and Epic reached a worldwide settlement under which Google said it would expand billing options and cut developer fees.

Last month, Google also settled another lawsuit for £260 million, which was brought on behalf of app developers, without making any admission of liability or wrongdoing.

($1 = 0.7536 pounds)

(Reporting by Sam TobinEditing by Tomasz Janowski)