Google is heading to trial at London’s Competition Appeal Tribunal (CAT) to defend against a £1.2 billion class-action lawsuit brought on behalf of approximately 20 million UK consumers over alleged anticompetitive app store fees.

The trial, led by class representative Elizabeth Coll (a consumer rights advocate and former head of digital at Consumers International), focuses on whether Google abused its dominant market position by imposing “excessive and unfair” commission fees on transactions made through the Google Play Store.

Core Allegations

  • 30% Commission Benchmark: The claim targets the standard commission rate of up to 30% that Google historically charged developers for digital downloads, in-app purchases, and recurring subscriptions.
  • Direct Consumer Harm: Claimants allege that because Google tied its billing system (Google Play Billing) directly to the Play Store and restricted alternative app distribution routes, developers were forced to absorb the fee and pass those inflated costs directly onto end-users through higher retail prices.
  • Scope and Payouts: The class covers UK consumers who made purchases via the Google Play Store dating back to October 2015. If the claimants secure a full win, damages could yield an average estimated payout of around £60 per affected UK consumer.
  • Litigation Backing: The consumer claim is being litigated by law firm Hausfeld & Co LLP, with third-party financing from litigation funders, including Fortress Investment Group and Mubadala.

Google’s Defense Position

Google strongly rejects the allegations, arguing that:

  1. Competitive Pricing: A 30% baseline commission has historically reflected global industry-standard rates for digital distribution, server maintenance, developer toolkits, and fraud-prevention frameworks.
  2. Open Ecosystem: Unlike Apple’s iOS environment, Android fundamentally allows sideloading and third-party app stores (such as the Samsung Galaxy Store), meaning Google does not operate a closed, untethered monopoly.
  3. Reduced Tiers: The company also points to tiered fee cuts implemented in recent years—such as halving the service fee to 15% on the first $1 million in annual developer revenue—to demonstrate competitive flexibility.

Context: Following the £260M Developer Settlement

The consumer trial represents the final, major leg of consolidated UK litigation over the Play Store:

  • The Developer Claim: A parallel opt-out collective lawsuit on behalf of UK app developers (led by Strathclyde University competition law academic Professor Barry Rodger) was originally scheduled to be tried alongside Coll’s consumer case.
  • The Settlement: In September 2026, the CAT formally approved a £260 million ($350 million) settlement between Google and the developer class, marking the largest payout in UK collective proceedings history and taking the developer trial off the docket without any admission of liability from Google.
  • The Consumer Case Stands: Because the consumer class opted not to settle, Google must now litigate the £1.2 billion claim on the merits in court, where a ruling against the search giant could trigger heavy damages and alter its billing architecture across the UK market.

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