Google Settles Antitrust Case with $700 Million Payment and Play Store Overhaul

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Alphabet’s Google has agreed to pay $700 million and implement significant changes to its Play app store as part of an antitrust settlement with U.S. states and consumers. The settlement, pending final approval from a judge, involves a $630 million payment to a settlement fund for consumers and a $70 million fund for states.

Financial Compensation for Consumers

Eligible consumers stand to receive a minimum of $2 and may be entitled to additional payments based on their spending on Google Play between August 16, 2016, and September 30, 2023. This move comes after Google faced accusations of overcharging consumers due to unlawful restrictions on app distribution on Android devices and imposing unnecessary fees for in-app transactions. However, Google has not admitted wrongdoing.

Statewide Collaboration

All 50 states and the District of Columbia, Puerto Rico, and the Virgin Islands have joined the settlement. California, North Carolina, New York, Tennessee, and Utah played leading roles in the coalition, with state regulators investing significant time in negotiations.

  

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Google’s Response and App Store Overhaul

Wilson White, Google’s Vice President for Government Affairs and Public Policy, stated that the settlement “builds on Android’s choice and flexibility” while maintaining strong security protections. Google emphasized its commitment to competition with other operating system makers and continued investment in the Android ecosystem for users and developers.

As part of the settlement, Google will enhance the ability of app and game developers to offer consumers alternative billing options for in-app purchases alongside Play’s billing system. The company had piloted “choice billing” in the U.S. for over a year.

Streamlining App Downloads and Future Changes

Google has also committed to simplifying users’ ability to download apps directly from developers. This move is designed to address concerns raised during the antitrust proceedings.

States’ Perspective

Democratic North Carolina Attorney General Josh Stein expressed optimism about the settlement, noting that the required changes would foster more innovation among app developers and lower consumer prices.

Epic Games’ Reaction and Future Actions

The settlement was announced in September but kept confidential until after the trial with Epic Games. Epic, the maker of “Fortnite,” secured a verdict that deemed parts of Google’s app business as anticompetitive. Epic indicated that the states’ settlement did not address the core issues of Google’s behavior—epic plans to propose changes to Google’s Play store in the coming year.

In a social media post, Epic CEO Tim Sweeney suggested that the states could have achieved a larger damages amount if they had continued the legal battle.