Google settles US app store lawsuit for $700m 

The settlement is just the latest in a string of defeats for the tech giant over the Android app store. 

Google’s parent company Alphabet will pay $700m (€640.6m) and alter its Google Play policies to settle claims that the app store unlawfully dominates the Android mobile applications market, resolving antitrust complaints brought by US attorneys general of about three dozen states and consumers.

The deal disclosed in a court filing late Monday calls for tweaks to Google Play policies designed to reduce barriers to competition in the markets for app distribution and payment processing. The lawsuits that were grouped together in federal court in California had threatened billions of dollars in revenue generated by the sale and distribution of apps through Google Play.

“This settlement builds on Android’s choice and flexibility, maintains strong security protections, and retains Google’s ability to compete” with makers of other operating systems, and invest in the Android ecosystem for users and developers, Wilson White, Google’s vice president for Government Affairs & Public Policy, said in a statement.

State attorneys general alleged that Google used anti-competitive tactics to block competition and ensure that developers have no choice but to go through the Google Play store to reach users in their complaint filed in 2021.

The settlement creates a $630 million common fund to benefit consumers and a $70 million fund to resolve state claims for penalties, restitution, disgorgement and fees.

Last week, a federal jury in San Francisco sided with Epic Games over its claims that Google Play app distribution, payment and fee policies are unlawful.

This result was a blow to not only Google’s operations but Apple’s as well as it could impact how the respective companies operate their app stores where they charge commissions of as much as 30% to software developers who typically have few other options.

The technology company separately settled claims by Match Group Inc. ahead of the trial with Epic in San Francisco that kicked off in early November.

In a separate class-action on behalf of almost 21 million consumers. Google was accused of inflating Android app prices by taking as much as a 30% cut of Google Play transactions.

Alphabet announced a tentative settlement in September with the states and consumers without disclosing financial details.

Bloomberg