Judge approves Google’s $700mln Play Store settlement

The deal resolves claims that Google unlawfully restricted competition in Android app distribution and in-app payment processing

Google’s $700 million settlement with US states and consumers over its Play Store won final approval from a federal judge, resolving a years-long legal fight over the technology company’s practices in the Android app market.

US District Judge James Donato in San Francisco granted final approval to the agreement, according to MLex, clearing a key remaining hurdle for a settlement first reached in 2023. The deal resolves claims that Google unlawfully restricted competition in Android app distribution and in-app payment processing.

The settlement calls for Alphabet’s Google to provide $630 million for consumers and $70 million for states.

Donato had indicated at an April 30 hearing that he intended to approve the agreement, but a final order had remained outstanding. The settlement administrator’s website had continued to state that the order had not yet been signed and that distributions to consumers had not begun.

The agreement covers all 50 states, the District of Columbia, Puerto Rico and the US Virgin Islands and stems from litigation accusing Google of using restrictions surrounding the Play Store and its billing system to limit competition and increase costs for consumers.

Under the settlement, eligible consumers include people who purchased apps through Google Play or made in-app purchases using Google Play Billing between Aug. 16, 2016, and Sept. 30, 2023. Most consumers are expected to receive payments automatically rather than having to submit claims.

The agreement also requires changes to Google’s Play Store practices. Among other provisions, Google agreed for specified periods to allow developers to offer alternative billing options and to make it easier for Android users to obtain apps outside Google Play.

The settlement was originally announced in 2023 but required court approval. Donato had previously raised questions about whether the agreement provided sufficient relief, particularly as separate litigation brought by Epic Games Inc. challenged many of the same practices surrounding Google’s control of Android app distribution.