Google reaches $700 million settlement in app store antitrust case
(CNN) — Google has agreed to pay $700 million and allow greater competition in its Play Store app store, under the terms of an antitrust settlement with U.S. states and consumers filed in federal court on Monday.
The Justice Department and dozens of states had accused Google in 2020 of abusing its dominant position in online search by allegedly harming competition through deals with wireless carriers and smartphone makers that made Google the default or exclusive option in products used by millions of consumers. These complaints were consolidated into a single case.
“Today the details of the agreement reached in September with state attorneys general were made public,” a Google spokesperson said in a statement on Monday.
According to the agreement and the company’s statement, “Google will pay $630 million to a settlement fund to be distributed to the benefit of consumers under a plan approved by the Court.” Another $70 million will go into a fund to be used by states. Some 102 million consumers will benefit from the fund, according to the agreement.
“Each eligible consumer will receive at least $2 and will receive additional payments in proportion to their spending on Google Play during the period from August 16, 2016 to September 30, 2023,” it states.
“This agreement builds on Android’s choice and flexibility, maintains strong security protections, and preserves Google’s ability to compete with other operating system manufacturers and invest in the Android ecosystem for users and developers,” Google said.
The company added: “Android and Google Play have continually evolved to offer more flexibility and choice… as well as intense competition from Apple and app stores across the open Android ecosystem.”
This settlement comes in the wake of a federal jury deciding that Google’s app marketplace was an illegal monopoly after a years-long battle with Epic Games, the maker of the hit video game “Fortnite.” In another ongoing case, the Justice Department has accused Google of intentionally stifling competition by challenging its search engine.