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Why is Google paying $90 million to app developers?

Why is Google paying $90 million to app developers?

Last week, Google proposed a $90 million settlement with Google Play Developers as their two-year legal battle drew to a close.

Back in 2020, U.S. app developers had filed a class action lawsuit against the search engine giant, claiming that the platform created a closed app ecosystem that left them at a disadvantage.

Google allegedly made agreements with phone manufacturers and employed other tactics to exclusively channel all consumer payments through Google Play, while levying a 30% fee on all Google Play transactions.

To add to this, the company also intentionally hindered ways developers could provide their consumers with any special offers and payment options outside the Play Store.

In addition to the multi-million dollar settlement that is yet to go into effect, Google has also pledged to make the Play Store environment more open and flexible for consumers and app developers alike.

This isn’t an isolated case. The tech industry is awash with countless lawsuits, ranging in the billions.

For this reason, these companies opt for Liability Insurance to cover the cost of defence and any payable damages that may arise. Policies like Directors and Officers (D&O) Insurance, or Commercial General Liability (CGL) Insurance help businesses handle expensive lawsuits that may otherwise prove disastrous for their finances.

Claims of unfair competition, negligence in an executive decision, or even injuries suffered at the business can be covered under these policies.

Large tech corporations like Google, Apple, and others usually have a full array of Liability Insurance policies at their disposal for the single purpose of battling lawsuits.

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Further Reading

Types of Liability Insurance policies for businesses