Google Agrees to Pay $700 Million in Antitrust Settlement with US Consumers and States

Google’s parent company, Alphabet, is set to pay $700 million as part of an antitrust settlement, according to a statement released on Monday. The funds will be directed towards US customers of its Android app store and state governments.

As part of the settlement, Google will implement changes to its Google Play app store to reduce barriers for developers, allowing apps to bill users directly. The move aims to address concerns raised by dozens of US states that accused Google of anti-competitive practices in the distribution of Android apps.

In the lawsuit filed in July 2021, 37 attorneys general alleged that Google used tactics to discourage the distribution of Android apps outside its Play store. The company was accused of collecting commissions on transactions through its payment system.

While a settlement was announced in September, the details were undisclosed until now. Google stated that it would pay $630 million into a settlement fund for the benefit of consumers and an additional $70 million into a fund for the states.

The settlement fund will be used to distribute money to eligible consumers who made purchases on the Play Store between August 16, 2016, and September 30, 2023. Eligible consumers will receive a minimum of $2, as per the court settlement terms.

Furthermore, the changes in Google Play will allow app and game developers to implement an alternative billing option for their US users alongside Google Play’s billing system, giving users the choice for in-app purchases.

While Google is challenging a recent verdict in a case with Epic Games, where it was deemed to have illegal monopoly power through its Android app store, the company emphasizes that its case with Epic is ongoing.

This settlement comes in the wake of increased scrutiny on tech giants and their practices, with a focus on promoting fair competition and consumer rights.