Google has offered to settle a class-action lawsuit involving 48,000 small app developers with a $90 million payout. See the details here…
The developers are suing Google for anti-trust policies, which forced them to use the search company’s billing system, which used to take 30% off all transactions. Although, from July 2021, it reduced the charges to 15% for the first $1 million made.
Hagens Berman is the law firm representing the plaintiffs, and in a statement, it claimed that the minimum payout for individual developers is $250 and that some developers could get as much as $200,000.
Google and Hagens Berman seem to have reached an agreement, but they will still need a court to approve the settlement before money can exchange hands.
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As part of the settlement, Google will set up an Indie Apps Corner that showcases independent and small developers building apps. The developers will be able to reach users and offer them out-of-app subscription services, according to the Developer Distribution Agreement.
Hagens Berman, through its managing partner, Steve Berman, said about the settlement:
“Today, nearly 48,000 hardworking app developers are receiving the just payment they deserve for their work product — something Google sought to profit from, hand over fist.
“With this settlement, developers will have more room to grow and more money in their pockets to promote their hard efforts.”
While the settlement keeps Google out of the court, for now, it still has the US and EU legislation to contend with as its anti-trust issues extend beyond just small-time developers.
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