A professor at the University of Strathclyde has filed 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 restricting competition in app distribution and imposing high fees on UK-based Android app developers.
The lawsuit, which seeks compensation of up to £1.04 billion, 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 companies and individuals from August 2018 onwards. This is just one of nine ongoing competition-related cases against Google, the Competition Appeal Tribunal (CAT) found.
According to Yahoo, the latest case was filed in March this year and referred to the tribunal by the High Court. It was brought by Connexity UK, a shopping ad management platform, along with other parties who also claim that Google has abused its dominant position to stifle competition.
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Interestingly, the Competition and Markets Authority (CMA) recently concluded its twin investigations into Google’s Play Store and Apple’s App Store. These investigations examined whether Google’s practices disadvantaged UK app developers. The CMA decided to close the investigations on the grounds that they “no longer represented an administrative priority”, but stressed that this decision should not be interpreted as a dismissal of the concerns raised.
In a statement shared by Yahoo, Professor Rodger underlined the importance of fairness in the digital economy, stressing that big tech companies like Google should not be allowed to undermine small businesses. “It is vital that the principles of fairness and equal opportunity underpin our rapidly growing digital economy,” Rodger explained.
Damien Geradin, founding partner of Geradin Partners, echoed this sentiment, pointing out that Google, as one of the most powerful companies in the world, continues to exploit its monopoly to eliminate competition and exploit app developers. He stressed that developers in the UK must have the opportunity to seek redress for Google’s alleged misconduct.
Source: Yahoo
