Google Agrees to $700 Million Play Store Settlement with US States and Consumers

Google has agreed to a $700 million payment and will increase competition in its Play app store as part of an antitrust settlement with US states and consumers filed in federal court on Monday. The Justice Department and dozens of states had accused Google in 2020 of abusing its dominance in online search through deals with wireless carriers and smartphone makers. These deals allegedly made Google Search the default or exclusive option on products used by millions of consumers, leading to the complaints being consolidated into a single case.

A Google spokesperson announced on Monday that the details of a settlement reached in September with state attorneys general have been publicly filed. The settlement includes Google paying $630 million into a fund for the benefit of consumers as part of a Court-approved plan.

The settlement, filed in a San Francisco federal court, includes an additional $70 million to be paid into a fund for use by the states. The fund is expected to benefit 102 million consumers. Each eligible consumer is set to receive a minimum of $2, with additional payments based on their Google Play spending from August 16, 2016 to September 30, 2023.

Google stated that this settlement enhances Android's options and adaptability while maintaining robust security measures. It also allows Google to stay competitive with other operating system manufacturers and continue investing in the Android ecosystem for users and developers. The company further emphasized that Android and Google Play have consistently developed to offer increased flexibility and choices, despite facing fierce competition from Apple and other app stores within the open Android ecosystem.

"We showed this in the recent trial and were disheartened that the verdict did not acknowledge the freedom of choice and competition that our platforms facilitate," it stated. This case is just one of many antitrust challenges confronting Google. Just last week, a federal jury ruled that Google's app marketplace was an unlawful monopoly, following a lengthy legal dispute with Epic Games, the creators of the popular video game "Fortnite."

In another ongoing case, the Justice Department accused Google of intentionally stifling competition challenging its search engine.

This is a developing story and will be updated.