Tech Giant settles lawsuit over app store monopoly; Consumers may receive compensation

Google is set to make a significant payout of $700 million following a lawsuit that accused the tech giant of abusing its power in relation to consumer access to apps on Android devices. The lawsuit, initiated by dozens of US states, claimed that Google forced game developers to use its proprietary payment system for apps downloaded from the Play Store, where the company charged a 15 to 30 percent cut on transactions. In a related lawsuit by Epic Games and other developers, a jury recently found that Google had violated US antitrust laws.

As part of the settlement, Google will reduce its original 15 to 30 percent cut to 11 to 26 percent. The company will also display different pricing options on the Play Store, allowing consumers to pay developers directly rather than through Google’s billing system. Developers can now show different prices for their products within the app without seeking permission from Google.

In addition to these changes, Google will pay $630 million “to be distributed for the benefit of consumers according to a Court-approved plan” and an additional $70 million to a fund for use by the 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.

Google, in a statement, expressed disappointment with the verdict and emphasized its commitment to improving Android and Google Play. The settlement follows a trend of legal challenges, as Google was previously required to pay $400 million to Android and iPhone users last year due to a privacy breach.