Global: Google Settles Antitrust Lawsuit for $700 Million, Allows Direct Payment Options on Play Store

Google has reached a settlement in an antitrust lawsuit, agreeing to pay $700 million and allowing developers on its Play app store to offer direct payment options to users. The lawsuit, brought by a group of US states, accused Google of stifling competition to its Play Store on Android devices.

While the settlement was announced in September, the terms were not disclosed until now. In addition to the financial settlement, Google has committed to making it easier for users to download apps on Android devices from sources other than its Play Store.

The tech giant faced accusations of overcharging customers through unnecessary fees for in-app transactions. As per the settlement terms, Google will pay $630 million into a fund for consumers and $70 million into a fund for states, pending final legal approval.

Eligible customers will receive a minimum of $2, with the possibility of additional payments based on their spending patterns on Google Play between August 2016 and September 2023.

Wilson White, Google’s Vice President of Government Affairs, stated, “This settlement builds on Android’s choice and flexibility, maintains strong security protections and retains Google’s ability to compete with other OS makers and invest in the Android ecosystem for users and developers.”

The settlement addresses concerns raised about Google’s app store practices, including allegations of unnecessary fees for customers. Google Play Store, one of the two main marketplaces for mobile apps alongside Apple’s App Store, charges developers a fee for customer payments and purchases made within apps downloaded from the store.

Under the settlement, these fees will be reduced when app makers handle their own transactions. Developers will also have the flexibility to display different pricing options during user purchases.

This settlement follows a recent legal victory for Epic Games, the creator of Fortnite, in a related case against Google. Google is facing additional lawsuits challenging its search and digital advertising practices.