Alphabet, Google's parent company, agreed to pay $700 million and make changes to its online app store, adhering to the terms of an antitrust settlement released Monday.
As part of the deal, the company will make changes to its app store to reduce barriers to competition for developers, including allowing apps to charge users directly.
Dozens of US states joined together in a lawsuit in July 2021 accusing Google of abusing its power when it comes to providing apps for Android mobile devices.
The lawsuit, supported by 37 state attorneys general, accuses Google of using anti-competitive tactics to prevent the distribution of Android applications in stores other than the Play Store, where the payment system collects commissions on transactions.
A settlement was announced in September, but details of the transaction were not disclosed.
“Google will contribute $630 million to a settlement fund to be distributed for the benefit of consumers pursuant to a plan approved by the courts” and “$70 million to a fund to be used by states,” Alphabet said in a statement Explanation. announced Monday.
App providers can now invoice Android users directly.
“App and game developers will be able to implement an alternative billing option alongside Google Play's billing system for their US users, who can then choose which option they want to use when making in-app purchases,” it said Press release.
In addition to the U.S. states that brought the case to trial, all 50 states, the District of Columbia and two territories joined the settlement.
Last week, Epic Games, publisher of the hit game Fortnite, won a major US legal battle against Google, thanks to a California jury that was convinced that the tech giant was abusing its monopoly on the mobile application market to the detriment of developers.
However, Alphabet said on Monday that it was appealing that ruling and believed the dispute with Epic was “far from over.”
Epic sued Google and Apple in 2020, accusing the tech titans of abusing control of their respective stores by selling apps and other digital content on mobile devices.