Alphabet, Google’s parent company, has agreed to a substantial $700 million antitrust settlement, which was unveiled on Monday. The funds are earmarked for distribution among US customers of the Android app store and state governments.
The settlement arises from a lawsuit initiated by multiple US states in July 2021, alleging Google’s abuse of power in restricting consumer access to apps on Android devices. To address concerns, Google will implement changes to its Google Play app store, promoting fair competition for developers and allowing apps to directly bill users.
The comprehensive settlement, endorsed by all 50 states, the District of Columbia, and two territories, aims to provide financial relief to eligible consumers who made purchases on the Play store between August 16, 2016, and September 30, 2023, with a guaranteed minimum payout of $2. Developers will also gain the flexibility to introduce alternative billing options for in-app purchases alongside Google Play’s billing system.
In a related development, Epic Games recently secured a significant legal victory against Google, with a jury ruling that the tech giant holds an illegal monopoly through its Android app store. Alphabet has contested this verdict, emphasizing that the ongoing case with Epic is far from concluded.
