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UK Professor Files Multi-Million Pound Suit Against Google’s Play Store

By  |  August 25, 2024

A University of Strathclyde professor has initiated a class action lawsuit against Google on behalf of small and medium-sized enterprises (SMEs), claiming that the tech giant’s excessive commissions on its Play Store have caused significant financial harm. According to Yahoo, Professor Barry Rodger, who specializes in competition law, has accused Google of abusing its dominant market position by limiting competition in app distribution and imposing steep fees on UK-based Android app developers.

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    The lawsuit, which seeks up to £1.04 billion in compensation, argues that developers have no viable alternative but to use Google’s Play Store to market their apps. The compensation would cover losses incurred by the affected businesses and individuals from August 2018 onwards. This is just one of nine ongoing competition-related cases against Google, as noted by the Competition Appeal Tribunal (CAT).

    Per Yahoo, the most recent case was filed in March this year and transferred to the Tribunal from the High Court. It was brought forward by Connexity UK, a shopping ad management platform, along with other parties, who similarly allege that Google has misused its dominant position to stifle competition.

    Related: Epic Games Pushes for Competition in Google Play Store After Antitrust Verdict

    Interestingly, the Competition and Markets Authority (CMA) recently closed its dual investigations into Google’s Play Store and Apple’s App Store. These investigations were probing whether Google’s practices disadvantaged British app developers. The CMA decided to end the investigations, citing that they “no longer constituted an administrative priority,” although it emphasized that this decision should not be interpreted as a dismissal of the concerns raised.

    In a statement shared by Yahoo, Professor Rodger underscored the importance of fairness in the digital economy, asserting that large tech companies like Google should not be allowed to undermine small businesses. “It is extremely important that the principles of fairness and equality of opportunity underlie our rapidly expanding digital economy,” Rodger stated.

    Damien Geradin, Founding Partner of Geradin Partners, echoed these sentiments, pointing out that Google, as one of the most powerful companies in the world, continues to leverage its monopoly to eliminate competition and exploit app developers. He emphasized the need for UK developers to have the opportunity to seek redress for Google’s alleged misconduct.

    Source: Yahoo