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Update:
- A judge has given the green light to a major antitrust class action lawsuit filed against Google in the United Kingdom.
- On July 19, the Competition Appeal Tribunal certified the class action alleging the company’s 30 percent commission on Android app purchases is an abuse of consumers and amounts to illegal, hidden charges, Reuters reports.
- Liz Coll, a former consumer policy lead at the charitable organisation Citizens Advice, filed the lawsuit..
- She alleges the Google Play Store commission is unlawful and unjustifiable, breaches European and British competition laws and abuses Google’s dominant position at the expense of British Android smartphone and tablet users.
- The case is reportedly not expected to go to trial before 2024.
Google Lawsuit Overview:
- Who: The Google antitrust class action lawsuit filed on behalf of around 19.5 million Android users in the UK who have bought apps or in-app digital content, services, or subscriptions since Oct. 1, 2015 seeks estimated damages of up to £920 million
- Why: The class action lawsuit alleges that Google’s 30 percent commission on Android-app purchases is an abuse of consumers and amounts to illegal, hidden charges
- Where: The class action lawsuit was filed in the Competition Appeal Tribunal in London, United Kingdom
(Aug 2, 2021)
Google has been hit with an antitrust class action lawsuit in the United Kingdom alleging that the company’s 30 percent commission on Android-app purchases is an abuse of consumers and amounts to illegal, hidden charges.
The Google lawsuit was filed by Liz Coll, a former consumer policy lead at the charitable organisation, Citizens Advice, and a known consumer advocate, Fortune reports.
Coll and Hausfeld & Co., the attorneys representing the plaintiffs, say that the Google antitrust class action lawsuit is filed on behalf of around 19.5 million Android users in the UK who have bought apps or in-app digital content, services, or subscriptions since Oct. 1, 2015.
“Google created the Android app marketplace, and controls it with a vice-like grip,” Coll said in a statement.
“Customers are herded towards the Google Play store, and once there[,] have no option but to pay a 30% fee whenever they buy an app or make an in-app purchase. Competing app stores, which could give the same service at a fraction of the price, never get a look in.”
She added that Google was a gatekeeper to many digital services, and “it has a responsibility not to abuse that position and overcharge ordinary consumers.”
“These hidden charges are unlawful, and Google’s customers deserve compensation, and better treatment from Google in future,” she said.
The Google antitrust class action lawsuit doesn’t cover in-app purchases of goods or services such as Uber or Deliveroo as they don’t incur the 30 percent commission, according to Fortune.
This isn’t the first time Google has faced legal action over alleged anticompetitive and monopolistic practices.
In 2020, ten states in the US filed a lawsuit against the company arguing that it had violated antitrust laws with digital ads. According to attorneys general from Texas, Arkansas, Idaho, Indiana, Kentucky, Mississippi, Missouri, North Dakota, South Dakota, and Utah, Google LLC uses targeted digital ads and deceptive agreements to dominate search advertising. Through these actions, Google has allegedly secured an anticompetitive monopoly.
Hausfeld, the attorneys in the current action, have also led a similar class action lawsuit against Apple for the same reasons.
Do you think it’s fair that Android users have to pay a 30 percent commission on Android apps? Tell us your thoughts in the comments section!
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