Google Users Will Share $630 Million in a Play Store Settlement

In a landmark antitrust settlement, Google has committed to pay $700 million and introduce measures to foster more competition in its Play app store. Filed in federal court on Monday, the settlement resolves long-standing accusations that Google hindered competition through its app store terms and fees.

Approximately 102 million U.S. consumers stand to benefit from the settlement, receiving a total compensation of $630 million, while the remaining $70 million will go to the participating states. Notably, about 71.4 million affected consumers won’t need to file a claim, automatically receiving $2 or more based on their spending through the Google Play Store from Aug. 16, 2016, to Sept. 30, 2023.

This settlement is poised to reshape Google’s app store business, especially in the wake of a recent federal jury decision labelling Google’s app marketplace as an illegal monopoly, a result of the prolonged legal battle with Epic Games, creator of the popular game “Fortnite.” Google is currently challenging this decision.

The settlement not only involves financial compensation but also mandates changes to Google’s app store practices. Among these changes, Google will expand a user choice billing program for five years, allowing users to opt for in-app purchases through either Google’s billing system or a third-party channel. The program aims to offer developers using third-party billing systems a slight discount on Google’s fees.

Additionally, app makers will have a multi-year guarantee to inform users about promotions, alternative billing systems, Google’s commissions, and ways to circumvent the company’s fees. Google will simplify the process of sideloading, allowing users to install apps from unofficial app stores and third-party websites, accompanied by clearer warning screens.

While the states involved hailed the settlement as a victory against overcharging consumers and stifling competition, Epic Games expressed dissatisfaction, deeming it weak and insufficient. As Google faces multiple legal challenges, this settlement marks a significant development in the ongoing scrutiny of the company’s practices.