“Google Settles Play Store Lawsuit, Agrees to Pay $700 Million to US Customers and States.”

“Google Settles Play Store Lawsuit, Agrees to Pay $700 Million to US Customers and States.”

Alphabet’s Google has reached an antitrust settlement with US states and consumers, agreeing to pay $700 million and allowing for increased competition in its Play app store. The settlement, disclosed in a San Francisco federal court, includes $630 million for consumers and $70 million for states, pending final approval from a judge.

Image credit – ANDROID AUTHORITY

Under the settlement, eligible consumers will receive a minimum of $2, with additional payments based on their spending on Google Play between Aug. 16, 2016, and Sept. 30, 2023. All 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands are part of the agreement.

The accusations against Google included overcharging consumers through restrictions on app distribution on Android devices and unnecessary fees for in-app transactions. While Google did not admit wrongdoing, it faced allegations of anticompetitive practices in its app business, as affirmed by a California federal jury in a trial with Epic Games.

Google’s Vice President for Government Affairs and Public Policy, Wilson White, stated that the settlement reinforces Android’s choice and flexibility, emphasizing strong security measures and Google’s ability to compete and invest in the Android ecosystem.

As part of the agreement, Google commits to expanding the ability of app and game developers to offer consumers alternative billing options for in-app purchases alongside Play’s billing system. The company has piloted “choice billing” in the US for over a year and plans to simplify users’ direct downloading of apps from developers.

Lawyers for the states expressed confidence that the settlement would provide significant and lasting relief for consumers nationwide. They highlighted the magnitude of the remedies obtained from Google, stating that no other US antitrust enforcer had secured similar outcomes from a major digital platform.

While the settlement addresses monetary relief, Epic Games, the maker of “Fortnite,” remains unsatisfied, asserting that it does not address the core of Google’s alleged unlawful and anticompetitive behavior. Epic plans to advocate for opening up the Android ecosystem in the next phase of its trial.

Google faces additional lawsuits challenging its search and digital advertising practices, maintaining its denial of wrongdoing in those cases.

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