Google has agreed to pay £260 million in compensation to UK-based app developers who allege they incurred losses due to commission fees charged on the company’s Play Store. The settlement, if approved by the Competition Appeal Tribunal next month, would represent the largest payout under the UK’s collective action framework.

The original claim, valued at slightly over £1 billion, accused Google of abusing its dominant market position by imposing commissions of up to 30 percent on sales made through its Play Store. Additionally, the lawsuit argued that Google restricted alternative methods of app distribution, effectively making the Play Store the sole platform through which UK developers could sell their software on Android devices.

The legal action was initiated by Barry Rodger, a competition law expert at Strathclyde University Law School, and covers losses suffered by developers from August 2018 onward. Rodger emphasised that for many UK developers, particularly small businesses, the Play Store remained the primary way to reach customers, leaving them little choice but to accept Google’s commission structure. He described the proposed settlement as a positive outcome, noting that it would provide meaningful financial redress to businesses that might have found it challenging to litigate against Google individually.

Under the terms of the settlement, approximately £160 million is earmarked for compensation payouts, while around £100 million will cover legal costs and fees. Eligibility for compensation extends to any UK-based developer who sold content through apps distributed via the Play Store.

Google expressed satisfaction with the agreement, stating it reached the settlement in order to resolve the dispute, pending court approval. The settlement halts what was previously scheduled to be a trial.

Separately, Google remains under scrutiny in another significant legal case. The company is facing a £5 billion lawsuit brought on behalf of British businesses, alleging abuse of dominance in the search market. That case, led by Or Brook, an associate professor of competition law at Oxford, has been certified by the Competition Appeal Tribunal and is set to proceed to trial.

The outcomes of these cases reflect ongoing regulatory and legal challenges faced by major technology firms over market practices and competition concerns in the UK and beyond.