Google Offers 100 Billion KRW Settlement to Developers Who Filed Monopoly Abuse Lawsuit

[Image source=Yonhap News]

[Asia Economy Reporter Buaeri] Google has proposed a settlement worth approximately 100 billion won to developers who filed an antitrust class-action lawsuit.

On the 30th (local time), Google posted a settlement proposal on its blog statement to end the lawsuit with developers that began two years ago.

First, it decided to allocate $90 million (about 116.8 billion won) to a fund supporting developers who earned annual revenues of $2 million (about 2.6 billion won) or less from 2016 to 2021.

Google will reduce the commission rate on the first $1 million (130 million won) of revenue developers earn annually from the Play Store from the existing 30% to 15%. This commission rate will be applied at least until May 25, 2025.

Google also announced it will revise its terms to allow developers to communicate outside the Play Store using consumer information obtained within the Play Store.

Earlier, in August 2020, developers collectively filed a lawsuit claiming that Google violated antitrust laws and harmed developers through policies that hinder competition in its Play Store.

The developers also pointed out that most app transactions were conducted through Google's own payment system, which takes a 30% commission on payment amounts.

The law firm Hagens Berman, representing the plaintiffs, predicted that if Google establishes the fund, about 48,000 developers will qualify for payment, each receiving at least $250 (320,000 won).

The lawsuit will conclude once the U.S. Northern District Court of California approves the settlement proposed by Google.

Meanwhile, the U.S. Congress is pushing legislation that would require Google and Apple to allow app downloads outside their own app markets and prohibit mandatory in-app payments. In Korea, the amended Telecommunications Business Act, known as the 'Google Gapjil Prevention Act,' which bans mandatory in-app payments, has been in effect since March 15.