Google has agreed to a $700 million settlement in an antitrust case with US states and consumers. The terms include a payment of $630 million into a settlement fund for consumers and $70 million into a fund for states. The settlement, still pending a judge’s final approval, stems from allegations that Google overcharged consumers through restrictive app distribution practices on Android devices and imposed unnecessary fees for in-app transactions.
While Google did not admit wrongdoing, the settlement aims to foster greater competition in its Play app store. Eligible consumers, as part of the settlement, will receive at least $2, with the potential for additional payments based on their spending on Google Play between August 16th, 2016, and September 30th, 2023. All 50 states, along with the District of Columbia, Puerto Rico, and the Virgin Islands, have joined the settlement. Google was previously accused of unlawful restrictions on app distribution and excessive fees, but this settlement marks a significant step in addressing these concerns.
Google’s statement emphasizes that the agreement builds on Android’s choice and flexibility while maintaining security protections and the company’s ability to compete in the operating system market. As part of the settlement, Google pledges to simplify users’ ability to download apps directly from developers and expands the options for app and game developers to provide consumers with alternative billing choices for in-app purchases. The company highlights its pilot program of “choice billing” in the US for over a year.
While this settlement addresses financial remedies and operational changes, it does not impact the separate legal battles Google faces over its search and digital advertising practices. Epic Games, which recently won a trial against Google regarding anticompetitive practices, has stated that the settlement does not address the core of Google’s behavior, and the company plans to press for further changes in the next phase of its trial.
