In a groundbreaking move, the recent settlement between Google and consumers over its Play app store, totaling a massive $700 million, has taken an unexpected turn. Legal representatives for consumers, who played a pivotal role in the resolution, are seeking an astonishing $122.8 million in fees for their efforts leading up to the agreement.
The terms of this unprecedented pact, disclosed on Monday night in San Francisco federal court, reveal a breakdown of $70 million allocated to the states and a substantial $630 million fund earmarked to compensate consumers for allegations of overcharging by Alphabet’s Google for various apps.
U.S. District Judge James Donato now holds the responsibility of evaluating the settlement and determining the appropriate fees for the consumer plaintiffs’ legal teams, which include prominent firms like Bartlit Beck and Kaplan Fox & Kilsheimer. These legal experts expressed their intent to request the full anticipated fee, leaving a fund of approximately $500 million for the consumers.
While lawyers for the consumers declined to provide any comments, the state plaintiffs stated their decision to withhold a stance on the consumer lawyers’ fees at this juncture.
Google, currently tight-lipped, has not commented on whether it intends to challenge the proposed fee bid.
This nationwide antitrust class action, initiated by consumer attorneys in 2020, alleges that Google monopolized Android app distribution and in-app payment services. In a unique collaboration, states subsequently filed a similar lawsuit, leading to both groups deciding to pursue the antitrust claims jointly.
Notably, Google did not admit or deny the allegations as part of the settlement reached on Monday.
Critics, including Ted Frank of the Hamilton Lincoln Law Institute, known for challenging consumer settlement terms, deem the proposed $122 million fee award as an “outrageous windfall.” Frank’s group is likely to object if the fee figure remains unchanged when the formal request is lodged.
Frank contends that consumer lawyers piggybacked on the coalition of state attorneys general, who initiated their own case. He points out that an earlier ruling by Judge Donato severely limited the value of the private plaintiffs’ case, preventing it from proceeding as a class action.
In their joint filing on Monday, the states and consumer lawyers emphasized spending hundreds of hours over a year negotiating the settlement. The private law firms invested millions of dollars in pursuing the litigation.
A fee award of $122.8 million would constitute approximately 19% of the settlement fund, falling below the 25% benchmark for litigation in California and other states within the jurisdiction of the 9th U.S. Circuit Court of Appeals.
As part of the settlement, eligible consumers are entitled to receive at least $2, with the option of receiving more based on their app purchases from Google’s Play store.
Consumers also have the opportunity to voice objections or exclude themselves from the settlement. The case is officially titled In re Google Play Store Antitrust Litigation and is filed in the U.S. District Court for the Northern District of California under case number 3:21-md-02981.
