In a significant development, Google has agreed to a $700 million settlement and pledged to enhance competition within its Play app store, marking the resolution of an antitrust case with US states and consumers. The settlement terms were officially filed in federal court on Monday, following accusations in 2020 that Google abused its dominance in online search to stifle competition.
The Justice Department and many states accused Google of anti-competitive practices, alleging that the tech giant had harmed competition through deals with wireless carriers and smartphone manufacturers. These deals purportedly made Google Search the default or exclusive option on the products used by millions of consumers. The complaints were later consolidated into a single case.
As part of the settlement, Google will pay $630 million into a fund designated for the benefit of consumers. The funds will be distributed according to a court-approved plan, with an additional $70 million allocated to the states. Approximately 102 million consumers are expected to benefit from this fund, with each eligible consumer receiving a minimum of $2. Additional payments will be based on the consumer’s Google Play spending between August 16, 2016, and September 30, 2023.
In a statement, Google highlighted that the settlement builds on Android’s commitment to choice and flexibility, maintaining robust security protections. The company asserted its continued ability to compete with other operating system makers and invest in the Android ecosystem for users and developers. Despite the settlement, Google expressed disappointment with the verdict, stating that it did not recognize the choice and competition enabled by its platforms.
This antitrust case is one of several challenges Google is currently facing. Last week, a federal jury determined that Google’s app marketplace constituted an illegal monopoly, concluding a prolonged legal battle with Epic Games, the creator of the popular video game “Fortnite.” Another ongoing case involves the Justice Department accusing Google of intentionally suppressing competition in its search engine operations.
The settlement underscores Google’s efforts to address antitrust concerns and promote a more competitive landscape within its app store, reflecting the evolving dynamics in the tech industry.
