Tech giant settles with state attorneys general for $700 million over anticompetitive conduct

Las Vegas, Nevada – Google has agreed to pay the State of Nevada $800,000 as part of a multi-million-dollar settlement to resolve a lawsuit over Google Play Store misconduct. The tech giant settled with other attorneys general on Tuesday for $700 million over anticompetitive conduct in its store.

“Competition in the marketplace is at the heart of how our economy functions and provides the best products and services for consumers,” said Nevada Attorney General Aaron Ford. “This settlement shows that large corporations like Google will not be allowed to monopolize the market and, furthermore, will be held accountable by my colleagues and I across the country for their anticompetitive practices.”

Key Points of the Settlement:

• Google will pay $630 million in restitution, minus costs and fees, to consumers who made purchases on the store between August 2016 and September 2023, and were harmed by the company’s practices.
• In addition, Google will also pay the states an additional $70 million in penalties. Those eligible will not need to submit a claim, and will receive their payments automatically through PayPal, Venmo, check or ACH transfer.
• The suit against Google began in 2021 and accused the company of monopolizing the market on Android app distribution and in-app payment processing.
• The states said Google signed anticompetitive contracts to prevent other app stores from being preloaded onto Android devices, bought off key app developers who may have launched from rival app stores, and created technological barriers to deter consumers from downloading apps directly to their devices.
• An in-principle settlement was agreed to on Sept. 5, 2023. The finalized terms of that deal were released Tuesday.

Changes Google Must Make:

• Give all developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years.
• Allow developers to offer cheaper prices for their apps and in-app products for consumers who use alternative, non-Google billing systems for at least five years.
• Permit developers to steer consumers toward alternative, non-Google billing systems by advertising cheaper prices within their apps themselves for at least five years.
• Not enter contracts that require the Play Store to be the exclusive, pre-loaded app store on a device or home screen for at least five years.
• Allow the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years.
• Revise and reduce the warnings that appear on an Android device if a user attempts to download a third-party app from outside the Google Play Store for at least 5 years.
• Maintain Android system support for third-party app stores, including allowing automatic updates, for four years.
• Not require developers to launch their app catalogs on the Play Store at the same time as they launch on other app stores for at least four years.
• Submit compliance reports to an independent monitor who will ensure that Google is not continuing its anticompetitive conduct for at least 5 years.

Additional Information:

• Much of the case was litigated alongside app developers Epic Games and Match. Match announced a separate settlement earlier this year, while Epic Games took its case to trial.
• The suit was led by attorney generals from North Carolina, Utah, Tennessee, New York, California, and joined by the attorney generals of all remaining states, including Nevada, and the District of Columbia.

Impact:

This settlement is a major victory for consumers and developers who have been harmed by Google’s anticompetitive practices. It will make it easier for consumers to choose how they pay for apps and in-app purchases, and it will give developers more freedom to compete with Google.

Credits: KOLOTV