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Google has agreed to pay $700 million and allow more competition in its Play Store to resolve allegations that it stifled competition with its Android app store.
The company will pay $630 million into a consumer settlement fund and $70 million into a fund used by states, Portal reported Monday evening on the terms of an antitrust settlement with U.S. states and consumers. The settlement still requires final approval from a judge.
The settlement states that eligible consumers will receive at least $2 and may receive additional payments based on their spending on the App Store between August 16, 2016 and September 30, 2023. All 50 states, Washington, DC, Puerto Rico and Virgin Islands joined the settlement.
Google is alleged to have overcharged consumers through unlawful restrictions on the distribution of apps on Android devices and unnecessary fees for in-app transactions. The company did not deny the allegations.
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Google has agreed to pay $700 million and allow more competition in its Play Store to resolve allegations that it stifled competition with its Android app store. (Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
The settlement was announced by some states in September, but the terms were kept confidential ahead of the related trial between Google and video game maker Epic Games. A California federal jury sided with Epic Games last week, arguing that parts of Google's app business were anticompetitive.
Wilson White, Google's vice president of government affairs and public policy, said in a statement that the agreement “builds on Android's choice and flexibility, maintains strong security safeguards, and preserves Google's ability to compete with other (operating system) manufacturers and in Android.” “Ecosystem for users and developers.”
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 App Store billing system. As part of the deal, Google said it would simplify the ability to download apps directly from developers.
In their filing, attorneys for the states said that the terms of the settlement “will provide significant, meaningful and lasting relief to consumers across the country” and that “no other U.S. antitrust jurisdiction has previously been able to obtain relief of this magnitude from Google.” .” ” or another major digital platform.
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Google will contribute $630 million to a consumer compensation fund and $70 million to a fund used by states. (Marlena Sloss/Bloomberg via Getty Images / Getty Images)
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Epic Games sought an injunction in its case, but not financial damages. The company is expected to make its own proposal about possible changes to Google's App Store to the judge who will hear the cases next year. Corie Wright, head of public policy at Epic Games, said in a statement that the states' settlement “failed to address the core of Google's unlawful and anti-competitive behavior.”
Wright said Epic Games will work to “truly open up the Android ecosystem” in the next phase of its testing.
Google also faces additional lawsuits over its search and digital advertising practices. The company has denied any wrongdoing in these cases.
Portal contributed to this report.