On Monday, Google’s parent company Alphabet (GOOGL) agreed to pay a $700m settlement to its customers and select US states allowing a wider variety of competition in its Play app store. The antitrust settlement was disclosed in a San Francisco federal court; however, it awaits a judge’s final approval.
Google to pay $700m settlement to customers for unlawful app store fees
According to Yahoo!Finance, Google is expected to pay out $70m to a state fund which includes all 50 states, Puerto Rico, the Virgin Islands and the District of Columbia. Google is also set to pay $630m into a consumer settlement fund which will then send $2 minimum to eligible customers based on their Google Play store spending between 16 August 2016 and 30 September 2023.
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Despite not admitting fault, the settlement (announced in September 2023 by Utah) is due to Google overcharging Play app store customers through unlawful restrictions on app distribution on Android devices, as well as unnecessary charges for in-app transactions.
The tech giant has recently found itself entwined in another trail with “Fornite” maker Epic Games. Last week, a California federal jury deemed that certain elements of Google’s app business were anticompetitive, a verdict that sided with Epic Games.
Google Vice President for government affairs and public policy, Wilson White, stated:
[The settlement] builds on Android’s choice and flexibility, maintains strong security protections, and retains Google’s ability to compete with other (operating system) makers, and invest in the Android ecosystem for users and developers.
The company has promised to simplify users’ ability to download and access apps direct from developers.
