To promote greater competition in its Play app store, Google has agreed to pay $700 million as part of an antitrust settlement with U.S. states and consumers.
Google faced allegations of overcharging consumers by limiting app distribution and imposing unlawful restrictions on Android devices. They were also alleged to have applied unnecessary fees for in-app transactions.
Google did not admit wrongdoing. Terms of the settlement were revealed in a federal court in San Francisco, according to The Guardian.
Pending a judge’s final approval, Google will pay $630 million into a settlement fund for consumers, and the remaining $70 million will go into a fund to be used by states. All 50 U.S. states plus Washington, D.C., Puerto Rico, and the Virgin Islands were part of the settlement.
Consumers involved in the settlement will obtain a minimum of $2, but further payments are possible depending on their spending activity on Google Play between August 16, 2016, and September 30, 2023.
According to Google’s vice president for government affairs and public policy, Wilson White, 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.”
Google said it was also enhancing the options for app and game developers, offering consumers alternative billing methods for in-app purchases. These measures would exist alongside Google Play’s existing billing system. The company noted that it has been testing “choice billing” in the U.S. for over a year.
The settlement will also result in Google simplifying users’ ability to download apps directly from developers.
The remedies in the settlement terms “will offer significant, meaningful, long-lasting relief for consumers throughout the country,” said the states’ attorneys.