Google to pay $700 million to consumers over Play store antitrust dispute

Google has agreed to pay $700 million to consumers in the United States as part of a lawsuit that accused its Play app store of overcharging customers, Reuters reported Tuesday.

While the settlement's terms were disclosed Monday, the technology firm struck the deal in September. It states that $630 million will be used to compensate consumers, and $70 million will be funneled into a fund to be used by states. All 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands joined the settlement. The agreement still requires a judge's approval.

Consumers eligible for compensation will receive at least $2 based on their Google Play purchases between August 16, 2016, and September 30, 2023.

The lawsuit, led by Utah, accused Google of overcharging consumers by stifling app store competition for Android devices. According to the states, users would have spent less on apps if there were more options and Google did not hold an alleged monopoly.

Wilson White, Google's vice president of government affairs and public policy, stated that the settlement "builds on Android's choice and flexibility, maintains strong security protections, and retains Google's ability to compete with other (operating system) makers, and invest in the Android ecosystem for users and developers."

As part of the settlement agreement, Google will grant greater opportunities for app developers to provide alternative billing options and simplify the ability to download apps directly from developers.

In a separate antitrust lawsuit filed by Epic Games, the video game firm that created "Fortnite," a California jury unanimously determined last week that Google Play holds an illegal monopoly by using anticompetitive tactics to deter competitors, Blaze News previously reported.

Epic Games argued that Google uses a "bribe and block" scheme to prevent Android app store competition from entering the marketplace. Additionally, U.S. District Judge James Donato, who is overseeing the case, accused Google of intentionally deleting "disturbing evidence" relevant to the case.

Donato claimed that Google led "a frontal assault on the fair administration of justice" by tossing evidence. The judge called it "deeply troubling" and noted that he had "never seen anything so egregious."

Epic Games' public policy head, Corie Wright, stated that the company's lawsuit aims "to truly open up the Android ecosystem," noting that the states' legal action "did not address the core of Google's unlawful and anticompetitive behavior."

Epic Games CEO Tim Sweeney said in a statement on X, "The State Attorneys General settlement is an injustice to all Android users and developers. It endorses Google's misleading and anticompetitive scare screens, which Google intentionally designed to disadvantage competing stores and direct downloads."

Google has denied any wrongdoing in these cases.

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