News Summary
Google, a subsidiary of Alphabet, has agreed to pay $700 million to consumers and states as part of a settlement over an antitrust case. All 50 states have joined the settlement, along with the District of Columbia, Puerto Rico, and the Virgin Islands. Google will also allow for increased competition in its Play app store.
News Details
Google, a subsidiary of Alphabet, has agreed to pay $700 million to consumers and states, and make changes to allow for increased competition in its Play app store, according to the terms of an antitrust settlement that was revealed on Monday.
Of the total settlement amount of $700 million, $630 million will go to a consumer settlement fund and $70 million to a state fund, according to the settlement, which is still awaiting judicial approval. Eligible consumers can expect to receive at least $2 per person, which may increase based on what they spent in the Google Play store between August 2016 and September 2023. All 50 states, along with the District of Columbia, Puerto Rico, and the Virgin Islands, have joined the settlement.
Wilson White, Google’s Vice President of Government Affairs and Public Policy, clarified some of the changes that will occur in the company’s app store in a blog post. Among these changes will be “user-choice billing,” where developers can now offer different pricing options within the app. The company is also working to streamline “sideloading,” which is the installation of apps outside the Play store.
Although Google stated that it “is disappointed that the ruling did not recognize the choice and competition that our platforms enable,” the changes will take effect after formal judicial approval of the settlement.
Google had reached an initial settlement in September, but the terms were kept under wraps ahead of a trial between Google and Epic Games, the maker of “Fortnite.” A California jury ruled in favor of Epic last week in a case that accused Google’s Play store of maintaining illegal monopolistic power. Google has stated that it intends to appeal the ruling.
Shares of Alphabet, Google’s parent company, rose 0.5% to $136.42 per share around 10 a.m. ET on Tuesday, and have increased by more than 53% in 2023 so far.
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