(USNewsBreak.com) – Google has faced some serious legal trouble lately. Users have accused the company of creating a monopoly system by forcing Android phone users to download apps using the Play Store rather than going through a third-party payment system. Many developers claimed to have lost revenue because of the arrangement, while the Big Tech company has raked in billions. Instead of taking the case to trial, several attorneys general have agreed on a settlement with Google that will see it pay hundreds of millions of dollars.
The agreement isn’t new. Google settled with the state attorneys general in September. However, the parties recently made the details of the settlement public. In total, Google has agreed to pay out $700 million and make other concessions. Of the sum, $630 million will go towards compensating US customers, though the individual payout will likely amount to around $2 and up, depending on the purchases made through the app. The company will pay the other $70 million into a fund that states will use to cover penalties.
Google to pay $700M in antitrust settlement reached with states before recent Play Store trial loss https://t.co/aDYAMbj6QK
— MarketWatch (@MarketWatch) December 19, 2023
While the settlement amount is a hefty sum, it’s nowhere near the original $10.5 billion the petitioners sought. However, the states said they decided to settle because of fears that the jury would think the damages too exorbitant or that the combined Google and Epic lawsuits, presented as originally intended, might confuse them when lawyers confronted them with the facts of the case.
In addition to paying out the $700 million, Google has also agreed to enact changes to make it easier for Android users to download apps from other outlets for five years. In so doing, it will minimize the number of scare tactics it uses — such as pop-up messages — to deter users.
While the state attorneys general hail it as a win, video game company Epic Games has continued to pursue its own suit and plans to hold the Big Tech giant accountable for losses it incurred, citing the recent settlement as offering “no true relief for consumers or developers.”
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