Google has agreed to pay $700 million and make changes to its Play app store. This decision is part of a deal with US states and consumers to settle a court case. The case was about how Google's rules and fees for its app store were not fair to other companies.
Out of this $700 million, $630 million will go to about 102 million people in the US. These people will get money because the court case said Google's actions were wrong.
The rest of the money, $70 million, will be given to the states that were part of the lawsuit. This settlement is a big deal because it means Google has to change how it runs its app store and pay a lot of money to consumers.
According to the settlement terms, the vast majority of impacted consumers, approximately 71.4 million, won't be required to submit a claim to receive benefits from the agreement. Eligible consumers receive a minimum of $2 each, with the actual amount varying based on their expenditure in the Google Play Store from August 16, 2016, to September 30, 2023.
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Google to Pay Consumers in App Store Monopoly Settlement
The agreement is poised to significantly alter Google's approach to its app store operations, particularly under the heightened examination of its dominance in Android app distribution and its interactions with independent software creators.
This development follows a recent federal jury decision that labeled Google's app marketplace as an unlawful monopoly, a conclusion drawn from a prolonged legal conflict with Epic Games, the company behind the popular video game "Fortnite."
Google is fighting against that ruling.
New York's Attorney General, Letitia James, who is part of the lawsuit, said, "No company, big or small, should be able to control a market and use its power to make people pay too much and stop other companies from competing."
She added, "Google has used its big market share to unfairly increase prices and prevent developers from offering their apps in other stores for too long."
Meanwhile, the agreement was first made in September. Colorado Attorney General Phil Weiser praised it as a big win for consumers.
Mandated to Change the App Store Practices
The settlement with Google involves more than just payments to consumers and states. It also requires Google to change how its app store works differently for a particular time.
For instance, for the next five years, Google has agreed to let users choose how to pay for things inside apps. They can use Google's payment system or another company's payment method. This option, called user choice billing by Google, has been tested worldwide for over a year. Developers who use a different payment system will get a small break on the fees Google charges.
The settlement also promises app creators that for several years, they can tell users about special deals and other ways to pay that don't involve Google's system, including how to avoid Google's charges.
Additionally, Google needs to make it easier for consumers to install apps from places other than the official app store and other websites, known as sideloading. This policy includes changing the warnings that Google shows users when they try to sideload apps.
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