Alphabet's Google has agreed to a $700 million antitrust settlement with U.S. states and consumers, which was made known in a San Francisco federal court on Monday. The settlement entails $630 million to form a settlement fund for consumers, along with a $70 million fund for states. Those eligible for the settlement will receive a minimum of $2, with extra payments based on their purchases in the Google Play app store between Aug. 16, 2016 and Sept. 30, 2023. All 50 states, the District of Columbia, Puerto Rico and the Virgin Islands are involved in the settlement, which has yet to be approved by a judge.
The settlement revolves around Google being accused of overcharging consumers through unlawful restrictions and fees for in-app transactions, though the company did not admit wrongdoing. The terms were kept confidential until after Google's trial with Epic Games (maker of the "Fortnite" game), which ended last week with a verdict from a California federal jury agreeing with Epic on the anticompetitive nature of certain aspects of Google's app business.
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Wilson White, the Google vice president for government affairs and public policy, stated that the settlement "furthers Android's choice and flexibility, keeps up strong security measures, and preserves Google's potential to vie with other operating system suppliers, as well as invest in the Android ecosystem for consumers and developers." The firm announced that it would be enlarging app and game developers' capacity to give consumers an alternate billing selection for in-app transactions next to Play's billing system; a choice that has been trialed in the U.S. for more than a year. Google further said that it would be streamlining users' capability to download apps directly from creators. The lawyers representing the states in their court filing reported that the terms of the settlement "will deliver noteworthy, deliberate, long-term relief for consumers around the country." Further, the attorneys for the states said "no other U.S. antitrust regulator has yet been able to procure remedies of this magnitude from Google" or any other major digital platform.
Epic sought an injunction, not monetary compensation, and the firm is planned to put forward an offer to Judge James Donato, who is presiding over the lawsuits, on the potential alterations to Google's Play store. When approached, a representative for Epic had no immediate remarks on Google's resolution with states and customers. Additionally, Google is contending other court actions that challenge its search and online advertising processes, though it has denied any impropriety in those proceedings.
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