Google faces £1.2 billion lawsuit in UK over Play Store fees

Google is preparing to face a £1.2 billion class-action lawsuit in London, with claimants alleging that millions of UK Android users have overpaid for apps over the past decade. The case accuses the tech giant of passing on high commissions charged to developers through the Google Play Store directly to consumers.

The lawsuit, funded by Fortress Investment Group and supported by Mubadala Investment's Abu Dhabi arm, is scheduled for a seven-week trial in London starting this week. If successful, approximately 20 million consumers could receive around £60 each in compensation.

Plaintiffs contend that Google's parent company, Alphabet, has restricted competition and charged "excessive" fees for apps downloaded from the Google Play Store since 2015. Google denies these allegations, stating that Android offers more choice than competing platforms and that the Play Store protects users from cybersecurity threats.

This legal challenge follows similar actions against major tech companies. Apple lost a partial ruling in a similar case in the UK last year, and Google itself agreed to a £260 million settlement in August to resolve a separate lawsuit brought by software developers over Play Store commissions.

Consumer advocate Liz Coll, lead claimant, argues that Google's substantial developer fees ultimately translate into higher prices for end-users, many of whom are unaware of the up to 30% commission Google can charge. Google has faced other significant legal battles globally, including a US case against Epic Games, where it was found to have engaged in anti-competitive practices.