In an antitrust settlement made public on Monday, Google parent Alphabet agreed to pay $700 million, with the money going to state governments and US users of its Android app store.
The business will modify its Google Play app store as part of the settlement to lower obstacles to competition for developers, including allowing apps to charge consumers directly.
In a July 2021 lawsuit, dozens of US states banded together to accuse Google of misusing its authority with regard to user access to apps on Android-powered mobile devices.
Google is accused of using anti-competitive methods to prevent Android apps from being released at stores other than its Play store, where its payment system earns commissions on transactions, according to a lawsuit supported by 37 attorneys general.
The terms of the agreement were kept under wraps when the settlement was declared in September.
Alphabet announced in a statement on Monday that “Google will pay $630 million into a settlement fund to be distributed for the benefit of consumers according to a Court-approved plan and $70 million into a fund that will be used by the states.”
The settlement fund will be used to distribute money to eligible consumers across the United States.
Eligible consumers who made a purchase on the Play store between August 16, 2016 and September 30, 2023 will receive a minimum of $2, according to 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 implement 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,” the statement read.
All 50 states, the District of Columbia, and two territories have entered the settlement in addition to the US states that initially launched the action.
The creator of Fortnite, Epic Games, prevailed in a significant US legal dispute against Google last week when a jury found that the massive search engine uses its Android app store to unlawfully monopolize power.
“We are challenging that verdict and our case with Epic is far from over,” Alphabet stated on Monday.
In 2020, Epic filed lawsuits against Google and Apple, alleging that the internet giants were abusing their authority over the stores where they sold mobile apps and other digital material.