Google is set to defend itself in a £1.2 billion lawsuit in London this week, where it faces allegations that millions of UK consumers have been overcharged for app downloads on Android smartphones for more than a decade. The class action, backed by Fortress Investment Group and funded by Abu Dhabi’s Mubadala investment arm, could affect approximately 20 million consumers who may be entitled to an average payout of around £60 if the claim succeeds.

The case accuses Alphabet, Google’s parent company, of restricting competition and imposing excessive commission charges on software downloaded from the Google Play Store since 2015. The claimants argue that Google’s fees, which have been as high as 30 percent, have led to inflated prices for end users, including charges on in-app purchases and subscriptions such as gaming add-ons, music streaming, and dating apps.

Google denies the allegations, maintaining that it has not engaged in anti-competitive behavior. The company contends that its Android operating system provides consumers with more options than competing platforms and that the Google Play Store plays a vital role in protecting users from cybersecurity risks. Google also emphasized in its defense that the majority of apps on the Play Store are free, with only about 3 percent of large app developers paying commissions, which have decreased over time.

The claim, led by consumer policy specialist and class representative Liz Coll, asserts that Google has hindered rival app stores by requiring manufacturers to preinstall the Play Store on new devices and imposing barriers that disadvantage competing platforms. Coll highlights the significance of the case in setting a precedent against unchecked practices by major technology firms, stating that while the payout may be small compared to Google’s overall business, it represents an important step toward accountability.

This legal challenge follows a precedent established in a similar case against Apple, where the UK Competition Appeal Tribunal ruled last year that Apple’s App Store fees were unfair. Apple is currently appealing that judgment, with a Court of Appeal hearing scheduled for next year.

Google recently settled a related UK case by agreeing to pay £260 million to thousands of software developers over commissions charged on Play Store sales. In the United States, Google has also faced antitrust litigation, including a high-profile 2023 case brought by Epic Games, the maker of Fortnite, which successfully argued that Google’s exclusive agreements limited competition. That case resulted in a settlement requiring Google to allow rival app markets and payment methods on Android devices. Additionally, Google paid $700 million to settle a 2023 multistate US suit alleging conspiracy to exclude competing payment systems and inflate customer costs.

The upcoming trial in London is expected to last seven weeks unless a settlement is reached. Any compensation awarded will depend on the tribunal’s assessment of how much of the alleged overcharges were passed from developers to consumers. Google has pledged to vigorously contest the claims, emphasizing that the lawsuit overlooks the competitive landscape and consumer choice within the Android ecosystem.