Google Agrees To $700M Settlement In Antitrust Case, Promises Play Store Policy Revisions

Alphabet Inc.'s Google GOOG GOOGL has decided to settle a recent antitrust case for $700 million, alongside committing to amend its Play Store policies to encourage competition.

What Happened: On Monday, details shared with a San Francisco federal court revealed that Google will allocate $630 million to a consumer settlement fund and $70 million to a state fund, as per Reuters. 

The settlement, still pending final approval from a judge, states that eligible consumers, who made purchases on Google Play between Aug. 16, 2016 and Sept. 30, 2023, could receive at least $2, with a chance for more reimbursements.

This settlement includes all 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands. Google, although accused of overcharging consumers through app distribution restrictions and in-app transaction fees on Android devices, has not admitted to any wrongdoing.

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The settlement was initially announced in September by the lead plaintiff, Utah, alongside other states, but the terms were kept confidential until Google's trial with "Fortnite" maker Epic Games. Just last week, a California federal jury sided with Epic, concluding that parts of Google's app business were anti-competitive.

Google, as part of the settlement, has committed to easing the process for users to download apps directly from developers and provide alternate billing options for in-app purchases. Epic, despite the settlement, intends to push for further changes to the Android ecosystem in the next trial phase.

Why It Matters: This development comes in the wake of a number of high-profile lawsuits against tech giants. For instance, Apple Inc. recently settled a class-action lawsuit for $25 million over the Family Sharing feature.

Meanwhile, Epic Games' victory over Google in the antitrust lawsuit last week was a significant one. Epic had accused Google of maintaining an alleged monopoly over the Android app market, leading to a 30% commission fee on digital purchases via a mandatory payment method. The company's CEO, Tim Sweeney, has expressed his concerns that Google may still enforce high app store charges.

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