Google faces billion-quid bruising over Play Store fees in the UK

Competition Appeals Tribunal gives nod for claim to go to trial

A billion-pound legal action against Google over Play Store fees can proceed to trial.

The order [PDF] was made in May and a notice was sent to affected businesses today. An estimated £1.04 billion ($1.4 billion) in compensation is up for grabs if the trial, due to begin in October 2026, finds against the ad slinger.

The case hinges on apps sold by UK developers on Google's Play Store for Android customers. Google charges up to 30 percent in fees for the sale of digital content, although developers with revenue streams of $1 million or less are subject to a fee of 15 percent. The claim accuses Google of "abusing its dominant position to the detriment of thousands of UK businesses" that sold apps on the Play Store.

"Google has then used its dominant position to require developers to pay excessive and unfair commissions … on all their sales of digital content to customers."

The advertising giant is the subject of a European Commission investigation over alleged failures to comply with the Digital Markets Act (DMA), including a claim that users were steered away from cheaper downloads and services outside the Play Store. The US legal system has also taken a dim view of alleged business practices used by Google to bolster the Play Store.

Apple has also come under fire for its App Store practices from the European Commission and US federal courts. However, Android is a more open platform than iOS. It is possible to side-load apps onto Android devices, whereas Apple's operating system is considerably more locked down.

Class representative Professor Barry Rodger, an academic specializing in EU and UK competition law, noted that while sideloading was technically possible on Android phones and there are alternative Android app stores, Google took steps to undermine those as alternative methods of distributing apps and in-app content.

Rodger said: "The Tribunal's decision is a significant step towards ensuring redress for small businesses in the UK that have lost money through Google's conduct. Google abuses its Play Store monopoly by imposing excessive commissions, harming small business app developers and stifling crucial innovation and growth in the UK tech landscape."

Rodger claims that Google uses a variety of technical and contractual restrictions to keep UK app developers in the Play Store. "In a fair market, app developers would be paying less to distribute their apps and sell their digital content," he says.

Businesses that do not opt out of the claim could be in line for a share of the potential compensation.

The Register asked Google to comment, but the ad giant referred us to a previous statement, saying: "This lawsuit ignores the benefits and choice Android and Google Play provide as well as the competitive market in which we operate and we will defend it vigorously.

"Android has always allowed flexibility not found on other platforms – including multiple app stores and sideloading, and enables developers to build successful businesses.

"We compete vigorously and fairly for developers and consumers – our fees are the lowest of any major mobile platforms and 99 per cent of developers qualify for a service fee of 15 percent or less."

The trial will not start until October 2026. However, the decision by the Competition Appeal Tribunal to allow it to proceed to trial piles yet more pressure on Google over the Android Play Store. ®