Google has agreed to pay $700 million and allow for greater competition in its app store as part of an antitrust settlement with all 50 U.S. states disclosed on Monday, Dec. 18. The settlement, reached in September and still needs a judge’s final approval, will see Google paying $630 million into a fund for consumers and $70 million into a fund that the states will use.
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This means eligible consumers will receive at least $2 and may be eligible for more based on their spending on the Google Play app store between Aug. 16, 2016, and Sept. 30, 2023. U.S. states accused Google of abusing its power in the online marketplace by overcharging consumers and forcing strict terms on software developers.
As part of the settlement, Google will allow developers to charge consumers directly and simplify how users can download apps from developers without going through their Google Play store.
The settlement terms come a week after Google lost a separate antitrust lawsuit filed by Epic Games, the maker of Fortnite, where a jury ruled the app store was an illegal monopoly. Epic is expected to make suggested changes to Google’s app store next year. As for this case’s settlement, Epic CEO Tim Sweeney said in a social media post that it did not address “the core of Google’s unlawful and anticompetitive behavior.”
Epic’s vice president of public policy, Corie Wright added that the company will continue fight for what is fair.
“In the next phase of the case, Epic will seek meaningful remedies to truly open up the Android ecosystem so consumers and developers will genuinely benefit from the competition that U.S. antitrust laws were designed to promote,” Wright said.
GOOGLE HAS AGREED TO PAY 700 MILLION DOLLARS AND ALLOW FOR GREATER COMPETITION IN ITS APP STORE AS PART OF AN ANTITRUST SETTLEMENT WITH ALL 50 U.S. STATES DISCLOSED ON MONDAY.
THE SETTLEMENT — REACHED IN SEPTEMBER AND STILL NEEDING A JUDGE’S FINAL APPROVAL — WILL SEE GOOGLE PAYING 630 MILLION DOLLARS INTO A FUND FOR CONSUMERS AND 70 MILLION DOLLARS INTO A FUND THAT WILL BE USED BY THE STATES.
THIS MEANS ELIGIBLE CONSUMERS WILL RECEIVE AT LEAST TWO DOLLARS – AND MAY BE ELIGIBLE FOR MORE – BASED ON THEIR SPENDING ON THE GOOGLE PLAY APP STORE BETWEEN AUGUST 2016 AND SEPTEMBER OF THIS YEAR.
U.S. STATES ACCUSED GOOGLE OF ABUSING ITS POWER IN THE ONLINE MARKETPLACE BY OVERCHARGING CONSUMERS AND FORCING STRICT TERMS ON SOFTWARE DEVELOPERS.
AS PART OF THE SETTLEMENT – GOOGLE WILL ALLOW DEVELOPERS TO CHARGE CONSUMERS DIRECTLY –
AND SIMPLIFY HOW USERS CAN DOWNLOAD APPS FROM DEVELOPERS WITHOUT GOING THROUGH ITS GOOGLE PLAY STORE.
THE TERMS OF THIS SETTLEMENT COME A WEEK AFTER GOOGLE LOST A SEPARATE ANTITRUST LAWSUIT FILED BY EPIC GAMES – THE MAKER OF FORTNITE – WHERE A JURY RULED THE APP STORE WAS AN ILLEGAL MONOPOLY.
EPIC IS EXPECTED TO MAKE ITS SUGGESTED CHANGES TO GOOGLE’S APP STORE NEXT YEAR..
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