Google settles antitrust case with USD700M payment to US states, consumers

(MENAFN) Alphabet's Google has reached an antitrust settlement with U.S. states and consumers, agreeing to pay USD 700 million and implement measures to foster greater competition in its Play app store. The settlement, disclosed in a San Francisco federal court on Monday, outlines that Google will allocate USD 630 million to a settlement fund for consumers and USD 70 million to a fund for states, as stated in the company's announcement.

The allegations against Google involved accusations of overcharging consumers due to unjust restrictions on app distribution on Android devices and unnecessary fees for in-app transactions. While Google did not admit wrongdoing, it has agreed to the settlement terms. The final approval of the settlement is still pending from a judge.

Lead plaintiff Utah and other states initially announced the settlement in September, but the details were confidential until after the conclusion of Google's trial with "Fortnite" maker Epic Games. A California federal jury recently sided with Epic, concluding that certain aspects of Google's app business were anticompetitive.

Wilson White, Google's Vice President for Government Affairs and Public Policy, stated that the settlement: "builds on Android's choice and flexibility, maintains strong security protections, and retains Google's ability to compete with other (operating system) makers, and invest in the Android ecosystem for users and developers."

The company announced that it is enhancing the capability for app and game developers to offer users an alternative billing option for in-app purchases alongside Google Play's billing system. Google mentioned that it had conducted a pilot program for "choice billing" in the United States, spanning over a year.

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