Google Settles Play Store Dispute, Agrees to Pay $700 Million to US Consumers

As part of an antitrust settlement with U.S. states and consumers, Google will reportedly pay $700 million and redesign its Play app store to promote greater competition, the firm announced in files made in federal court on Monday in San Francisco.

The settlement, which still needs a judge's final approval, specifies that Google would pay $70 million into a fund that will be utilized by the states and $630 million into a fund for customers.

Google Settles Play Store Dispute, Agrees to Pay $700 Million to US Consumers

According to the settlement, qualifying users will get at least $2 and could receive more money depending on how much they spend on Google Play between August 16, 2016, and September 30, 2023.The settlement included participation from all 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands.

Coriell Wright, vice president of public policy at Epic Games reaction on google settlement

According to Coriell Wright, vice president of public policy at Epic Games, Google's settlement with the state attorney general will not provide "any genuine relief" for customers.

Because of Google's supracompetitive 30% costs for Google Play Billing or 26% garbage fees added to payments that Google isn't involved in processing, consumers will continue to overpay for digital items. Additionally, Wright said in a statement, "developers will still be limited in how they can distribute their apps, and developers who opt to use a third-party payment option will be compelled to use Google's misleadingly named "user choice billing" system rather than having creative freedom over the design of their payment systems."

more about google settlement

Google was accused of overcharging customers by imposing illegitimate limits on the Android app store's program distribution and charging needless fees for in-app purchases. It made no admission of guilt. Despite paying a substantial amount, Google is only paying a small portion of the $10.5 billion in damages that the attorneys general predicted the business would have to pay if they had chosen to go to trial rather than settle.For the next five years, Google has committed to implement more modifications aimed at simplifying the process for users to obtain and install Android apps from sources other than its Play Store. When other options are being used, fewer security alerts, or "scare screens," will be displayed.

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