US judge dismisses Google app store antitrust class action

U.S. District Judge ‌James Donato said the federal Foreign ​Trade Antitrust Improvements Act bars Hurley’s claims because the transactions occurred in Canada, generally placing ​the conduct outside the reach of U.S. antitrust law

Alphabet’s Google has convinced a U.S. judge to dismiss a lawsuit accusing the company of overcharging Canadian customers for Android apps and other purchases from the Google Play ​store, ruling that U.S. antitrust law does not apply to the claims.

U.S. District Judge ‌James Donato in San Francisco on Tuesday dismissed a proposed class action by Canadian resident Connor Hurley, who alleged Google’s app store policies led to inflated prices for purchases made by residents of Canada.

Donato said the federal Foreign ​Trade Antitrust Improvements Act bars Hurley’s claims because the transactions occurred in Canada, generally placing ​the conduct outside the reach of U.S. antitrust law.

Overall, this case concerns Canadian ⁠consumers purchasing products in Canada, Donato wrote. The judge said Hurley had not shown U.S. ​antitrust laws have any application to conduct within the sovereign state of Canada.

Hurley’s lawsuit filed last year, had argued that Google’s commissions on app and in‑app sales caused higher prices in the US that, in turn, caused higher prices paid by Canadian consumers.

The ​lawsuit mirrored claims in a case lodged against Google in 2020 by Fortnite maker Epic Games. Epic ​in 2023 won a jury verdict, and Donato, who presided over the trial, later issued a sweeping injunction requiring Google ‌to ⁠make changes to its app store.

Epic and Google have since reached a settlement, which is pending approval before Donato.

Hurley’s lawsuit said Google’s terms of service allowed claims by Canadians to be litigated in U.S. courts under U.S. law.

Donato said that Google’s terms of service could not expand the territorial reach ​of U.S. antitrust laws, and ​that questions about ⁠enforcing the forum provision must be resolved by Canadian courts.

Hurley’s related state claims against Google under California laws were also dismissed.