As part of the settlement, the company will make changes to its Google Play app store to lower competition barriers for developers, including the ability for apps to bill users directly
Google parent Alphabet has agreed to pay $700mln as part of an antitrust settlement made public on Monday, with the funds going to US customers of its Android app store and state governments.
As part of the settlement, the company will make changes to its Google Play app store to lower competition barriers for developers, including the ability for apps to bill users directly.
Dozens of US states joined forces in a lawsuit filed in July 2021 that accused Google of misusing its power regarding consumer access to apps on mobile devices running its Android operating system.
The lawsuit backed by 37 attorneys general accused the tech giant of using anti-competitive tactics to discourage Android apps from being distributed at shops apart from its Play store, where its payment system collects commissions on transactions.
A settlement was announced in September, but the details of the deal were not revealed.
Google will pay $630mln into a settlement fund to be distributed for the benefit of consumers as per a Court-approved plan and $70mln into a fund that will be used by the states, according to a statement from Alphabet on Monday.
The settlement fund will be used to distribute money to eligible consumers across the US.
Eligible consumers who made a purchase on the Play store between August 16, 2016 and September 30, 2023 will receive a minimum of $2, as per the court settlement.
Apps will also now be able to charge Android users directly for in-app purchases.
App and game developers will be able to apply an alternative billing option alongside Google Play’s billing system for their US users who can then choose which option to use when making in-app purchases, according to the statement.
Apart from the US states who filed the case, all 50 States, the District of Columbia and two territories have joined the settlement.