US Judge Reverses Class Action Status for Google Play Store Customers, Potentially Reducing Damages
A recent ruling by US District Judge James Donato has revoked the class action status for 21 million Google Play Store customers who claimed that Google artificially inflated prices for Android apps on the platform. The customers alleged that they could have downloaded the same apps at lower prices outside of the Play Store.
Judge Donato canceled the class action order after new evidence revealed that the expert testimony presented by the plaintiffs, which aimed to prove inflated prices, was based on unsupported assumptions about the Play Store apps. The expert, Hal J. Singer, failed a reliability test, leading to the exclusion of his testimony. As a result, potential damages in the case may be significantly reduced from the initially estimated billions of dollars.
However, it is important to note that the court’s order is yet to be finalized, as a separate appeal on the class action certification is currently under consideration in a federal court. Both parties involved have been instructed to collaborate and seek a resolution to the appeal before a hearing scheduled for September 7.
Google expressed appreciation for the court’s careful consideration and reiterated that Android enhances openness and choice, benefiting consumers. The tech giant remains committed to presenting its case in the ongoing legal proceedings.
Interestingly, Google managed to exclude Hal J. Singer from the record by substituting in a new expert witness, economist Gregory K. Leonard, who strongly disputed Singer’s testimony. Singer’s model for estimating price inflation was deemed unreliable by Leonard, as it assumed that all apps within the same category on the Play Store were suitable substitutes for one another. Leonard argued that this assumption did not reflect the real world, as customers may not necessarily substitute an app with a larger category share simply because it has a higher market share. Leonard’s critiques regarding the model’s economic soundness were accepted by the court, further questioning Singer’s estimates of alleged app overcharges.
Although the court expressed reservations about Google’s replacement of Singer, it acknowledged that Singer did not seriously dispute Leonard’s testimony. In complex antitrust disputes like this one, the path to a fair result often involves various turns as the record develops, according to Judge Donato.
The final outcome of this case remains uncertain, with the revocation of class action status potentially leading to reduced damages for the plaintiffs. The ongoing legal proceedings will continue to shape the future of Google’s practices on the Play Store.
