Google faces £1bn UK app store charges trial

A legal claim against Google, seeking over £1 billion for millions of UK consumers and businesses regarding alleged hidden charges on app sales, is proceeding to trial in the United Kingdom. The lawsuit, brought on behalf of around 20 million individuals and companies, concerns purchases made on the Google Play Store or on Android phones between October 1, 2015, and July 31, 2026.

The case is being heard by the UK’s Competition Appeal Tribunal. The central allegation is that Google contravened competition law by imposing commission fees of up to 30% on app developers for transactions made through its Play Store. This financial burden, the claim asserts, was ultimately passed on to consumers through increased prices for paid apps, in-app purchases, and subscription services.

Details of the Claim

The lawsuit encompasses a range of digital purchases, including paid applications, ongoing subscription payments for services like music and gaming, and upgrades that remove advertisements or unlock additional features. For instance, a purchase of in-game currency, such as gold bars for extra lives in a game, would have had a portion retained by Google and the remainder passed to the game developer. The claim argues that the portion Google retained was factored into the price paid by the consumer.

Google has refuted these claims, asserting that its Play Store operates with some of the lowest fees in the market. A spokesperson stated that Android offers greater choice than other mobile platforms and that the company would mount a strong defence of its services, arguing the lawsuit overlooks this choice and the competitive environment.

The action was initiated by Liz Coll, a consumer technology policy expert and former manager at Citizens Advice. Hausfield law firm is representing the claimants. This legal challenge faced delays, partly due to ongoing settlements in related cases, including a £260 million agreement by Google's parent company, Alphabet, in September to resolve a class action on behalf of UK app developers.

This development follows a similar case against Apple, where the Competition Appeal Tribunal ruled in favour of claimants last year, finding the company had abused its market dominance by charging approximately 30% commission on app and in-app purchases. Liz Coll stated that the trial aims to recover money for individuals who have paid for apps, games, and subscriptions without realising a hidden charge was included in the price.

Lesley Hannah, a partner at Hausfield, commented that Google has leveraged its market position to charge excessive commissions for over a decade, with consumers ultimately bearing the cost.

What Happens Next

The trial will now proceed at the Competition Appeal Tribunal. The duration and specific dates for the proceedings have not yet been fully detailed. Google has indicated it will defend the case vigorously.