- Recent judgment confirmed UK court's decision in July 2022 to certify legal claim, paving the way for a full trial
- The Competition Appeal Tribunal has now issued a Collective Proceedings Order, determining that class members and potential class members have until 28 November 2022 to consider their rights in relation to the claim
- Legal action is brought by consumer champion Liz Coll on behalf of millions of UK Android smartphone and tablet users, alleging they paid excessive fees to Google when buying apps and making in-app purchases
- Google is alleged to have infringed competition laws by imposing technical and contractual restrictions on app developers in the Google Play Store, according to the claim
- Google allegedly abused its powerful position, charging many developers an unlawfully high 30% commission on app and in-app purchases in the Google Play Store and harming UK users of the Google Play Store
- UK users of the Google Play Store may collectively be entitled to damages up to £920 million for certain Google Play Store app purchases since October 2015
Following the Competition Appeal Tribunal judgment on 31 August 2022, which confirmed that consumer champion Liz Coll is authorised to bring an opt-out collective claim against Google for alleged infringements relating to Google's Play Store, the Tribunal has now determined that class members and potential class members have until 28 November 2022 to either opt-out of the claim, if they do not wish to be part of the class represented by Liz Coll; or, for those who meet the class definition but were not living or domiciled in the UK on 12 July 2022, to opt-in to the claim.
For more details about the claim, to check if you or your business are potentially included in the claim and to understand your rights and how to opt-out or, if you or your business were not living or domiciled in the UK on 18 July 2022, to opt-in to, the claim, please visit:
https://www.appstoreclaims.co.uk/Google.
The claim alleges Google has breached competition law by excluding competition and/or charging an unlawfully high level of commission on purchases in their Play Store (including purchases of apps and in-app purchases), causing around 19.5 million users of the UK Google Play Store to be overcharged. Liz Coll a consumer tech policy expert with over thirteen years' experience campaigning for consumers' rights online seeks compensation on a collective basis for affected Google Play Store users in the UK. Following the Tribunal's earlier determination, she now represents all those who were living in the UK on 18 July 2022 and fall within the class definition, unless they choose to opt-out of her claim by 28 November 2022.
The legal claim against Google, and the judgment released on 31 August 2022
Most Android users download their apps through Google's Play Store. The claim alleges users have been overcharged when buying apps in the Google Play Store, and when making certain in-app purchases, including those in chart-topping apps such as popular games.
When users spend money in the Google Play Store, often only a portion goes to the actual app developers. A significant share typically, around 30% goes to Google. Developers who release their apps on the Google Play Store are required (with some exceptions, such as purchases of physical services) to use Google's own Play Store Payment Processing System, and cannot avoid Google's 30% charge when they do so, which the claim alleges is unnecessarily high and thus unlawful. Google also discourages app developers from distributing Android apps through alternatives to the Google Play Store, by imposing a series of contractual and technical restrictions on their ability to do so. This curtails the app developers' ability to offer lower prices. In turn users of Google's Play Store, who would otherwise have paid lower prices absent Google's conduct, are harmed.
Liz Coll representing the class of harmed users in the UK maintains that Google's conduct is unlawful. Google can impose its high fee on Google Play Store users because of its powerful position as the licensor of the Android operating system and its control of the Google Play Store, where Google sets the rules.
Shortly before the hearing of Liz Coll's application to represent affected Google Play Store users in July 2022, Google chose to no longer oppose the application. Google was therefore not represented at the court hearing, at which the Tribunal granted the application on the spot. The Tribunal's full reasoning as to why the claim can proceed was provided in a judgment dated 31 August 2022.
The Tribunal has now also made the collective proceedings order, which confirms its decision in July and the judgment in August, to certify the claim, which sets out the full scope of the class of claimants she represents, and important rights for those claimants.
Class members: Who is eligible
Any UK user of an Android smartphone or tablet who purchased paid apps, paid subscriptions or made other in-app purchases within the UK version of the Google Play Store at any point since October 1, 2015 is potentially entitled to compensation from Google for its anti-competitive practices. The purchases must have been made on an Android smartphone or tablet on which the Google Play Store was pre-installed. If a user did not have to download the Google Play Store, it is likely it was pre-installed.
All such purchasers who were living in the UK on 18 July 2022 are automatically included within the claimant class. Device users can check their eligibility for compensation by logging into their Play Store or Google account and checking their "Payments and subscriptions" or "Order history" and the country listed under "Account and device preferences
Individuals or businesses who are included in the class and would like to be excluded can do so by notifying Liz Coll of that decision by 28 November 2022. Individuals or businesses who meet the criteria of the class but were not living in or domiciled in the UK on 18 July 2022 may join the claim by likewise informing Liz Coll of that decision by 28 November 2022.
For any updates and for further information, including how to opt-out or opt-in to the claim, please visit: https://www.appstoreclaims.co.uk/Google/Faq.
Further information for claimants
The legal claim applies to purchases of popular apps on Android smartphones and tablets, which require payment at point of download, subscription payments, or allow for in-app purchases of digital goods or services. It does not apply to apps providing physical goods or services that will be consumed outside of the app. These include Deliveroo and Uber, which are not required to use Google's payments system or pay Google the disputed 30% commission.
Affected app purchasers, on whose behalf the class action is brought, will not pay costs or fees to participate in this legal action, which is being funded by Vannin Capital, a global litigation funder. The action is insured, which means that class members have no financial risk in relation to the claim.
Liz Coll is represented by Lesley Hannah, Luke Streatfeild, Sofie Edwards, Kio Gwilliam, Anna Stellardi and Antonio Delussu at law firm Hausfeld Co. LLP, with barristers Ronit Kreisberger KC and Michael Armitage from Monckton Chambers, Mark Hoskins KC, Jennifer MacLeod and Matthew Kennedy from Brick Court Chambers, Tristan Jones from Blackstone Chambers, and George McDonald from 4 New Square. She has also instructed expert economist Derek Holt from AlixPartners UK LLP.
Liz Coll is also advised on the claim by a consultative group with expertise and experience in competition and consumer law and payments regulation. This group consists of Sir Gerald Barling, former President of the Competition Appeal Tribunal; Dr Christine Riefa, an academic specialising in consumer law; and Aidene Walsh, an Executive Director at Banking Competition Remedies and a Non-Executive Director of the Payment Systems Regulator.
Notes for Editors
About Hausfeld Co. LLP
Hausfeld is a leading international law firm specialising in competition law, with significant expertise in all aspects of collective redress and group claims.
ENDS
View source version on businesswire.com: https://www.businesswire.com/news/home/20220915005155/en/
Contacts:
Media enquiries:
Conal Walsh Amy Murphy Andreas Grueter Richard Seed, Palatine Communications
GoogleClaim@palatine-media.com
