USA: Google will pay US$700 million to consumers and states – 12/19/2023 – Tech

Google agreed to pay $700 million and allow greater competition in its PlayStore app store. The announcement of the agreement was made by a federal court in San Francisco, USA, this Monday (18) as part of the antitrust trial with US states and consumers.

The technology company will transfer $630 million to a consumer settlement fund and deposit another $70 million into a fund that will be used by states, according to the court. The sentence requires final approval from a judge.

The deal states that eligible consumers will earn at least $2 and will be able to receive additional payments based on their spending on Google Play between August 16, 2016 and September 30, 2023.

All 50 US states, the District of Columbia, Puerto Rico and the Virgin Islands have joined the agreement.

Google has been accused of overcharging consumers through illegal restrictions on app distribution on Android devices and unnecessary fees for in-app transactions. The company did not admit guilt during the process.

The 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 federal jury in California last week agreed with Epic that parts of Google’s app business were anticompetitive.

“(The agreement) reinforces Android’s choice and flexibility, maintains strong security protections, and maintains Google’s ability to compete with other operating system manufacturers and invest in the Android ecosystem for users and developers,” said Vice President of Google government affairs and public policy, Wilson White, in a statement.

The company said it is expanding the ability of app and game developers to offer consumers an alternative billing option for in-app purchases alongside the PlayStore billing system. Google said it has tested “choice billing” in the US for more than a year.

As part of the deal, Google said it would simplify users’ ability to download apps directly from developers.

In their request to the court, lawyers for the states assessed that the terms of the settlement “will provide significant, meaningful and lasting relief to consumers across the country.”

Lawyers for the states said “no other U.S. antitrust agency has yet managed to obtain remedies of this magnitude from Google” or another major digital platform.

Epic sued for an injunction but not monetary damages, and the company must make its own proposal to the judge hearing the cases — U.S. District Judge James Donato — about possible changes to Google’s Play store next year.

In a statement, Epic’s head of public policy, Corie Wright, commented that the states’ agreement “did not address the core of Google’s illegal and anti-competitive behavior.”

Wright said Epic will push in the next phase of its trial “to truly open up the Android ecosystem.”

Epic CEO Tim Sweeney, in a post on the social network

Google faces other lawsuits challenging its search and digital advertising practices. The company denied any wrongdoing in these cases.