Google fined 2 million euros by Paris Commercial Court

After more than three years of litigation, Google was sentenced by the Paris Commercial Court on Monday to a “civil fine” of 2 million euros for abusive business practices against mobile app developers.

Google has three months to revise seven clauses of its distribution contract, according to the judgment reviewed by AFP and Le Figaro on Tuesday.

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“We regret the decision of the Paris Commercial Court. Android and Google Play offer developers more choice than any other platform and the potential to reach a wider audience,” Google wrote to Le Figaro. commented in a statement, saying it reserved the right to appeal.

In 2018, the French Directorate-General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF) sued Google. In its ruling, the court criticized Google, saying the contract required developers to set in-app purchase prices within a price range defined by Google and required a 30 percent commission from each sale.”

Moreover, the court listed a total of seven abuse clauses, requiring Google to remove them from the contract within three months, and will impose a delay fine of 10,000 euros per day.

Furthermore, Google argues that its contracts have changed significantly since 2016, and some of the controversial terms have disappeared. For example, the document now states that both Google and the developer can terminate the contract, ending the asymmetry of the relationship. 

Google also claims to have changed commission rates. For developers with less than $1 million in annual revenue on Google Play, the commission rate dropped from 30% to 15%. In addition, the DGCCRF also took Apple to court, and the case is still under investigation.

(via)