CAT certifies £1.04 billion collective action by app developers against Google

07/03/25

On 6 March 2024, the Competition Appeal Tribunal (CAT) certified a £1.04 billion collective action brought on behalf of thousands of UK-based app developers against Google, by a leading academic, Prof. Barry Rodger.

Google, the well-known search engine operator, acquired Android in 2005, which led to the development of the Android smartphone operating system, one of the two main mobile operating systems globally (the other being Apple iOS).  Google also developed an app store, the Play Store, which accounts for the distribution of around 90% of Android-specific apps to device users, for which app developers are charged a 30% commission for purchased apps and in-app purchases (certain Play Store purchases do not trigger a commission payment).  

The developers’ case is that Google is dominant in the markets for (i) licensable mobile operating systems (which basically only includes Android since iOS cannot be licensed); and (ii) the distribution of apps.  The developers argue that Google abused its position by adopting a series of interlocking measures which ensure that developers were tied to app distribution via Google and prevented, or deterred, the use of alternative means of distribution, including direct distribution by the app developers via, e.g., websites (so-called side-loading).  This made it harder for the app developers to avoid paying the 30% commission imposed by Google and limited competition in other ways.  Finally, the developers also contend that the 30% commission is itself excessive and unfair. 

The CAT certified the proceedings in an oral ruling, with reasons to follow.  It required as a condition of certification certain amendments to the funding and other arrangements put in place by Prof. Rodger.