Google Could Dodge Massive Payout As Judge Reverses Class-Action Status For 21M Users

Alphabet Inc. GOOG GOOGL Google has found itself on the brink of potentially avoiding substantial payouts as a federal judge retracts class-action status for 21 million users. 

What Happened: U.S. District Judge James Donato in San Francisco, who had previously granted class-action status to 21 million users in an antitrust lawsuit against Google, has now canceled that decision, reported Bloomberg.  

This unexpected reversal could dramatically reduce the potential financial blow to the tech giant.

The lawsuit revolves around allegations that Google Play, the company’s app marketplace, has abused its control over Android mobile applications, resulting in users being overcharged for their app purchases.

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Judge Donato’s decision was based on his conclusion that an expert’s testimony for the consumer plaintiffs relied on assumptions not substantiated by the evidence presented. 

While this development is a significant win for Google, it is not the final verdict. 

The issue of class-action status is currently pending before a federal appeals court, and Judge Donato cannot unilaterally revoke his previous order that grouped users from 17 states.

The judge has called on lawyers representing both the consumer plaintiffs and Google to collaborate on finding a resolution for the appeals issue. A hearing is scheduled for Sept. 7, where further decisions will be made. 

Why It’s Important: Despite this recent turn of events, Google is still set to face a trial on Nov. 6, with antitrust claims brought forward by Epic Games, state attorneys general representing nearly 70 million consumers, the report noted. 

The users allege that Google inflated prices on Android apps by imposing a 30% commission on sales through Google Play, which, they argue, stifles competition and forces developers to use the platform.

Meanwhile, Apple Inc. AAPL also faces multiple antitrust lawsuits over its App Store fees in the U.S.

Photo via Shutterstock

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