Play Store Dispute: Google Agrees to Pay $700M in Antitrust Settlement

Google agreed to pay $700 million and make changes to its Play Store to settle claims that it had been limiting competition for its Android app store. The company will give $630 million to a fund for consumers and $70 million to a fund for states, according to a report by Reuters on Monday night. This is part of an agreement to resolve antitrust issues with U.S. states and consumers. The settlement is not final yet; it still needs approval from a judge.

Details of Google’s Play Store Dispute Agreement

The agreement states that eligible consumers will get at least $2, and they might receive more money depending on how much they spent in the app store from August 16, 2016, to September 30, 2023. All 50 states, Washington, D.C., Puerto Rico, and the Virgin Islands have agreed to this settlement.

Google is accused of charging consumers too much by placing unfair limits on how apps are distributed on Android devices and imposing extra fees for in-app transactions. The company did not deny these accusations.

Some states announced the settlement in September. However, the details were kept secret until after Google’s trial with video game maker Epic Games. A jury in California recently sided with Epic Games, stating that certain aspects of Google’s app business were anticompetitive.

Google’s Vice President for Government Affairs and Public Policy, Wilson White also made a statement. He mentioned that the settlement “enhances Android’s options and adaptability. It also upholds robust security measures and preserves Google’s capacity to vie with other operating system creators. This, alongside investing in the Android ecosystem for users and developers.”

The company stated that it is increasing the options for app and game developers to offer users an alternative way to pay for in-app purchases. This option will be available alongside the app store’s payment system. As a component of the agreement, Google mentioned that it would streamline the process for users to download apps directly from developers.

In the legal documents submitted to the court, lawyers representing the states asserted that the terms of the settlement “will provide substantial, meaningful, and enduring benefits for consumers nationwide”. They also highlighted that “no other U.S. antitrust authority has achieved remedies of this scale from Google” or any other major digital platform.

Epic Games to Demand Modifications to Google Play Store

Epic Games asked for an injunction but not money as part of its case. The company is anticipated to present its own suggestions to the judge overseeing the cases next year. This is with regards potential modifications to Google’s app store. Corie Wright, the head of public policy at Epic Games made a bold statement. He mentioned that the states’ settlement “did not tackle the fundamental issues of Google’s illegal and anticompetitive conduct.”

Wright stated that Epic Games will focus on the next stage of its trial “to truly open up the Android ecosystem.”

Google is also confronting other legal challenges related to its search and digital advertising practices. The company has consistently denied any wrongdoing in these cases.