The app developers had a lawsuit filed in federal court in San Francisco, which had accused Google of using agreements with smartphone makers, technical barriers and revenue sharing agreements.
The app effectively closes the ecosystem and shunts most payments through its Google Play billing system, giving default fees of 30 per cent. As per the statement in its blog, it would put $90 million into a fund to support app developers, which made less than $2 million in annual revenue from 2016-2021.
“A vast majority of US developers who earned revenue through Google Play will be eligible to receive money from this fund if they choose,” Google said in the blog post.
Google said it would also continue to charge a 15 per cent commission to developers who make $1 million or less annually from the Google Play Store. It already started in 2021. The court has approved the proposal.
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According to Hagens Berman Sobol Shapiro LLP, forty-eight app developers are supposed to be eligible for the 90 million funds, and the minimum payout is $250.
In 2021, Apple Inc agreed to loosen App Store restrictions on small developers, striking a deal in class action and also agreed to pay $100 million.