Alphabet’s Google has agreed to pay USD 700 million and to allow for greater competition in its Play app store, according to the terms of an antitrust settlement with U.S. states and consumers disclosed on Monday in a San Francisco federal court.
Google will pay USD 630 million into a settlement fund for consumers and USD 70 million into a fund that will be used by states, according to the settlement, which still requires a judge’s final approval.
The settlement said eligible consumers will receive at least USD 2 and may get additional payments based on their spending on Google Play between August 16, 2016 and September 30, 2023.
All 50 states, the District of Columbia, Puerto Rico and the Virgin Islands, joined the settlement.
Google was accused of overcharging consumers through unlawful restrictions on the distribution of apps on Android devices and unnecessary fees for in-app transactions. It did not admit wrongdoing.
The settlement said eligible consumers will receive at least USD 2 and may get additional payments based on their spending on Google Play between August 16, 2016 and September 30, 2023.
All 50 states, the District of Columbia, Puerto Rico and the Virgin Islands, joined the settlement.
Google was accused of overcharging consumers through unlawful restrictions on the distribution of apps on Android devices and unnecessary fees for in-app transactions. It did not admit wrongdoing.
Lead plaintiff Utah and other states announced the settlement in September, but the terms were kept confidential ahead of Google’s related trial with ‘Fortnite’ maker Epic Games. A California federal jury last week agreed with Epic that parts of Google’s app business were anticompetitive.
Wilson White, Google vice president for government affairs and public policy, in a statement said 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.”
As part of the settlement, Google said it would simplify users’ ability to download apps directly from developers.
The states’ attorneys said “no other U.S. antitrust enforcer has yet been able to secure remedies of this magnitude from Google” or another major digital platform.
Epic sued for an injunction, but not money damages, and the company next year is expected to make its own proposal to the judge hearing the cases, U.S. District Judge James Donato, about potential changes to Google’s Play store.
In a statement, Epic public policy head Corie Wright said the states’ settlement “did not address the core of Google’s unlawful and anticompetitive behavior.”
Wright said Epic will press at the next phase of its trial “to truly open up the Android ecosystem.”
Wilson White, Google vice president for government affairs and public policy, in a statement said 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.”
As part of the settlement, Google said it would simplify users’ ability to download apps directly from developers.
The states’ attorneys said “no other U.S. antitrust enforcer has yet been able to secure remedies of this magnitude from Google” or another major digital platform.
Epic sued for an injunction, but not money damages, and the company next year is expected to make its own proposal to the judge hearing the cases, U.S. District Judge James Donato, about potential changes to Google’s Play store.
In a statement, Epic public policy head Corie Wright said the states’ settlement “did not address the core of Google’s unlawful and anticompetitive behavior.”
Wright said Epic will press at the next phase of its trial “to truly open up the Android ecosystem.”
Source: Reuters
More In Business MORE...
