Google has agreed to a $700 million settlement in an antitrust case with US states and consumers, as disclosed in a San Francisco federal court.
The agreement requires Google to enhance competition within its Play app store and comes after accusations of overcharging consumers through restrictions on app distribution and in-app transaction fees for Android devices.
While Google did not admit wrongdoing, the company will contribute $630 million to a settlement fund for consumers and $70 million to a fund for states, pending final judicial approval.
According to the settlement terms, eligible consumers will receive a minimum of $2, with the possibility of additional payments based on their spending on Google Play from August 16, 2016, to September 30, 2023.
All 50 states, along with the District of Columbia, Puerto Rico, and the Virgin Islands, have joined the settlement.
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The settlement was initially announced in September by lead plaintiff Utah and other states, with details kept confidential until the conclusion of Google’s trial with Epic Games, the maker of “Fortnite.”
A California federal jury recently sided with Epic, finding certain aspects of Google’s app business to be anti-competitive.
Google’s Vice President for Government Affairs and Public Policy, Wilson White, stated that 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.”
Google also noted its commitment to expanding options for in-app purchases by allowing alternative billing methods for developers alongside Play’s billing system.
As part of the agreement, Google pledged to simplify the process for users to download apps directly from developers.
Lawyers representing the states emphasized that the settlement’s terms would provide “significant, meaningful, long-lasting relief for consumers throughout the country,” adding that no other US antitrust enforcer has secured remedies of this magnitude from Google or any other major digital platform.
While Google faces additional lawsuits challenging its search and digital advertising practices, the company maintains its denial of wrongdoing in those cases.
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