Google has recently reached a $700 million settlement in an antitrust lawsuit related to charges on its app store, Google Play. The Alphabet Inc-owned company has agreed to compensate millions of American users and create more space for competition within its app store. Although the settlement was reached in September, details are surfacing now, with the final approval pending from a judge.
Under the terms of the settlement, Google will pay $630 million directly to millions of users across all 50 states, as well as DC, Puerto Rico, and the US Virgin Islands. Additionally, $70 million will be allocated to a fund. Over 100 million consumers in the United States are eligible to receive compensation from Google, with more than 70 million set to receive their share automatically without the need for paperwork.
The eligible consumers are those who made in-app purchases and bought apps on Google Play between August 16, 2016, and September 30, 2023. The lead plaintiff, Utah, and other states initially announced the settlement in September, but the terms were kept confidential until now.
The accusations against Google include overcharging consumers through in-app purchases and imposing restrictions on the Android app store. While Google denies any wrongdoing, it has been accused of driving up costs and using anti-competitive tactics to stifle competition. The company has been alleged to force developers to use Google Play exclusively, limiting their reliance on other platforms.
As part of its defense, Google mentioned the implementation of “choice billing” in the US, providing consumers with an alternative to the Play Store’s billing system for in-app purchases. Despite the settlement, Google maintains its innocence and has not admitted to any wrongdoing.
It’s essential to note that the settlement is still pending final approval from a judge. The recent decision by a California federal jury favoring Epic Games in a related trial reinforces concerns about the anti-competitive nature of parts of Google’s app business.
This settlement signals a significant development in the ongoing scrutiny of major tech companies and their practices, emphasizing the importance of fair competition and consumer protection in the digital marketplace.
