Google has agreed to pay $90 million to settle a legal disagreement with the app developers over the revenue Google received from apps on Android handsets while enticing users to make in-app purchases.
Google Agrees to Pay Settlement After App Store-Related Lawsuit
The lawsuit filed against Google in the federal court of San Francisco alleges that Google has been closing the app ecosystem to many other app developers who might want to list their projects there. More than that, a Reuters report said that Google has also been accused of diverting payments through Google Pay's billing system, which has put users and developers at a financial disadvantage due to its default service fee of 30%.
In a blog post, the tech company said that in order to fulfill their end of the agreement, Google would be allocating a $90 million contribution to app developers. This will be done by earmarking the fund as a form of assistance to those who made less than $2 million in annual app store revenue within the years 2016 to 2022.
According to the company, a huge majority of US developers who earned their revenue by way of Google Play will be eligible to receive their share from the fund if they wish to.
Hagens Berman Sobol Shapiro LLP, the plaintiffs' attorneys, asserted that 48,000 software engineers were eligible for this $90 million fund, with the lowest award being $250. Google also said it would charge developers a 15% commission on the first $1,000,000 in sales they generate annually through the Play store. The IT company began doing this in 2021.
Congress in Washington is presently considering legislation that would require major internet companies like Google and Apple to permit sideloading, the practice of downloading programs without using an app store, since it would bar the developers from accessing the businesses' payment systems. Reports show that Google maintains its stance on permitting sideloading.
Google's Recent Settlement Payment Involves a Different Case
This is not the first time a lawsuit against Google has resulted in settlement costs being demanded. Google just paid $118 million to resolve a class-action lawsuit alleging gender discrimination against them. In accordance with the case, women in similar positions were paid less than men.
Since September 14, 2013, the settlement has applied to over 15,500 female employees in 236 different job titles in California, according to a statement from the legal firm Lieff Cabraser Heimann & Bernstein. According to court records, Google was accused of often assigning women to lower levels, paying women in covered positions less than men for essentially similar work; and failing to pay all employees' earned earnings when they left their jobs.
Along with the monetary award, Google will also undergo a leveling-at-hire practice analysis and have its pay equity studies reviewed by an outside labor economist. The Office of Federal Contract Compliance Programme launched a compliance audit on Google's Mountain View headquarters in September 2015, according to an early court filing. There are systemic pay discrepancies against women "almost across the whole workforce," according to data analysis for all 21,000 or so employees.
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