Google has agreed with a San Francisco court to pay $700 million and overhaul its Play Store as part of the antitrust settlement and foster increased competition.
According to the agreement, the Alphabet-owned company is set to pay $630 million to consumers and $70 million to US states. A judicial approval for the settlement is currently pending.
Customers who qualify for the fund will receive a minimum of $2, with potential additional payments based on their Google Play expenses between August 16, 2016, and September 30, 2023.
Partaking in the deal were all 50 US states, the District of Columbia, Puerto Rico, and the Virgin Islands.
Google faced accusations of overcharging consumers using unlawful distribution restrictions on Android apps and unnecessary costs for in-app transactions. The tech giant has not acknowledged any wrongdoing.
Lawyers representing the states and consumers disclosed the settlement in September, with the terms kept private ahead of Google’s trial with Epic Games. Last week, a California jury sided with the Fortnite maker, finding certain aspects of Google’s app business to be anti-competitive.
Google has pledged to work on further easing the download and installation process of Android apps from sources other than the Play Store for the next five years. The company will also reduce the frequency of security warnings, or “scare screens,” when users opt for other options.
Android App Makers Gain Payment Flexibility
Android app developers are set to have the ability to offer users alternative payment choices rather than being automatically taken to Play Store’s payment processing and commission system.
Apps would also be able to advertise reduced prices to customers using alternatives to the Play Store’s payment processing.
In a statement, Google’s Vice President for Government Affairs and Public Policy, Wilson White, said the settlement is based on Android’s selection and competitiveness. It also keeps the firm’s ability to compete and invest in the Android ecosystem.
Google revealed plans to enhance flexibility for app and game developers by allowing them to offer alternative billing options for in-app purchases on top of Play Store’s system. The company had tested “choice billing” in the US for over a year.
State attorneys considered the settlement a significant win for consumers. Still, Epic Games, which led the move against Google Play Store’s practices with an antitrust lawsuit in August 2020, disagrees.
