Google’s Parent Company Resolves Dispute, Allocates Funds to US Consumers and States in Landmark Antitrust Settlement.
Alphabet, Google’s parent company, has reached a $700 million settlement in an antitrust case related to its Google Play app store. The settlement, made public on Monday, allocates funds to both US customers of the Android app store and state governments.
In response to the lawsuit filed by 37 attorneys general in July 2021, the settlement includes adjustments to Google Play to alleviate competition barriers for developers. Notably, the changes enable apps to bill users directly, reducing the previously accused anti-competitive tactics.
As part of the settlement, Alphabet will pay $630 million into a settlement fund designed for the benefit of consumers, with an additional $70 million allocated to state funds. The settlement fund aims to distribute money to eligible consumers who made purchases on the Play Store between August 16, 2016, and September 30, 2023. Eligible consumers are expected to receive a minimum of $2, as specified in the court-approved plan.
A federal jury has ruled in favor of Epic Games lawsuit against Alphabet’s Google antitrust trial earlier this week. Epic Games originally filed the lawsuit three years ago against the tech giant’s app store.
After a month-long trial, within about four hours of deliberation,… pic.twitter.com/wvt59pg6TV
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Apps on Google Play will now have the capability to charge Android users directly for in-app purchases. Alphabet emphasized that developers can implement an alternative billing option alongside Google Play’s billing system, providing users with a choice for in-app purchases.
The settlement includes the participation of all 50 states, the District of Columbia, and two territories. While the terms of the settlement were announced in September, the details were disclosed on Monday.
This development follows a recent victory for Epic Games, the creator of Fortnite, against Google in a US court battle. The jury ruled that Google holds illegal monopoly power through its Android app store. Alphabet indicated that they are challenging this verdict, emphasizing that their case with Epic is ongoing.
Image Source: IgorGolovniov @ShutterStock
