The technology giant had been arguing a case in which it was accused of creating an anti-competitive ecosystem when dealing with app store fees

Google’s parent company Alphabet will pay £260m in order to bring an end to a UK class action lawsuit at the Competition Appeal Tribunal. The settlement was reached ahead of a 10-week trial set to begin in September.

The tech company has been part of an investigation exploring whether or not it has abused its market position to impose unfair fees on developers creating apps through the organisation’s Android OS.

The case was brought on behalf of UK app developers by prof Barry Rodger, who specialises in competition law and was financed by Bench Walk, a litigation funding firm. Rodger argued that Alphabet is deliberately blocking alternative channels for app distribution and charging up to 30pc for digital transactions on its Play Store.

The settlement is still subject to approval by the tribunal and if accepted will mean Alphabet will not admit liability. Roughly £160m of the settlement funds will be allocated for the involved UK developers and the remaining £100mn is expected to cover litigation funding, legal fees and additional expenses.