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Wednesday, January 15, 2025

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Google will pay $700 million as part of antitrust agreement

Alphabet’s Google will pay $700 million and make changes to its Play app store to boost competition as part of an antitrust agreement with US states and consumers.

This is stated in the company’s statement and in documents filed on Monday in federal court in San Francisco.

Google will pay $630 million into a fund for consumers and $70 million into a fund to be used by states, according to the settlement, which must be finalized by a judge.

Under the settlement, eligible consumers will receive at least $2 and may receive additional payments based on their Google Play spending between August 16, 2016 and September 30, 2023.

All 50 states, the District of Columbia, Puerto Rico and the Virgin Islands joined the settlement.

Google has been accused of overcharging consumers by imposing illegal restrictions on the distribution of apps on Android devices and charging unnecessary fees for in-app transactions. The company did not admit guilt.

As part of the settlement, Google said it will make it easier for users to download apps directly from developers.

North Carolina Attorney General Josh Stein told Reuters on Tuesday that “the changes Google must make will lead to increased innovation among app developers and lower prices for consumers, which has always been our main goal.”

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