The Competition Appeal Tribunal has approved the £260 million settlement of the opt-out collective action brought against Google on behalf of thousands of UK app developers, clearing the way for the largest distribution to class members the Tribunal has sanctioned since the UK's collective proceedings regime began in 2015.
Of the total, £160 million is earmarked for eligible developers, including sole traders and small businesses that sold apps or digital content through the Play Store from August 2018 onwards. The remaining £100 million covers the funding, insurance and legal costs of running the case. Individual payouts will be calculated on each developer's qualifying Play Store sales during the relevant period, and eligible businesses are being directed to the claim website to register ahead of the claims process opening.
As reported by City AM, the claim alleged that Google abused a dominant position by imposing unfair and excessive commissions on developers distributing through the Play Store. Google settled without any admission of liability or wrongdoing, saying it was pleased to reach agreement subject to court approval.
For the funding market, the approval resolves the question hanging over the case since August. Bench Walk Advisors financed the proceedings, and the professional parties agreed to forgo £34 million of their contractual entitlement, bringing their combined return down to the £100 million the Tribunal has now approved. The Tribunal's willingness to sanction a settlement of this size, with costs and funder returns disclosed and reduced in advance, gives funders a concrete benchmark for what the CAT will treat as just and reasonable.
Neil Purslow, Chairman of the Executive Committee of ILFA, said: “This landmark settlement vindicates the opt-out collective actions regime at an important moment for its future. Thanks to the regime and the litigation funders who underpin it, thousands of small businesses with no realistic alternative to take on a corporate wrongdoer will now be awarded compensation they could never have won on their own.”
“As the Government considers the future of the regime, this case is proof the system can deliver. This is a young regime that should be nurtured and expanded, not constrained, so more consumers and small businesses can hold powerful defendants to account.”
