Google to pay $700 million to US states, consumers in app store settlement
Legal Events
Google has agreed to pay $700 million and make several other concessions to settle allegations that it had been stifling competition against its Android app store — the same issue that went to trial in another case that could result in even bigger changes.
Although Google struck the deal with state attorneys general in September, the settlement’s terms weren’t revealed until late Monday in documents filed in San Francisco federal court. The disclosure came a week after a federal court jury rebuked Google for deploying anticompetitive tactics in its Play Store for Android apps.
The settlement with the states includes $630 million to compensate U.S. consumers funneled into a payment processing system that state attorneys general alleged drove up the prices for digital transactions within apps downloaded from the Play Store. That store caters to the Android software that powers most of the world’s smartphones.
Like Apple does in its iPhone app store, Google collects commissions ranging from 15% to 30% on in-app purchases — fees that state attorneys general contended drove prices higher than they would have been had there been an open market for payment processing. Those commissions generated billions of dollars in profit annually for Google, according to evidence presented in the recent trial focused on its Play Store.
Eligible consumers will receive at least $2, according to the settlement, and may get additional payments based on their spending on the Play store between Aug. 16, 2016 and Sept. 30, 2023. The estimated 102 million U.S. consumers who made in-app purchases during that time frame are supposed to be automatically notified about various options for how they can receive their cut of the money.
Another $70 million of the pre-trial settlement will cover the penalties and other costs that Google is being forced to pay to the states.
Although Google is forking over a sizeable sum, it’s a fraction of the $10.5 billion in damages that the attorneys general estimated the company could be forced to pay if they had taken the case to trial instead of settling.
Google also agreed to make other changes designed to make it even easier for consumers to download and install Android apps from other outlets besides its Play Store for the next five years. It will refrain from issuing as many security warnings, or “scare screens,” when alternative choices are being used.
The makers of Android apps will also gain more flexibility to offer alternative payment choices to consumers instead of having transactions automatically processed through the Play Store and its commission system. Apps will also be able to promote lower prices available to consumers who choose an alternate to the Play Store’s payment processing.
Related listings
-
Nigeria’s Court reinstates terrorism charges against separatist leader
Legal Events 12/14/2023Nigeria’s Supreme Court on Friday overturned a lower court ruling dismissing terrorism charges against a popular separatist leader whose trial has been blamed for an outbreak of violence in the country’s southeast region.The Court said Nn...
-
Russian authorities ask the Court to declare the LGBTQ ‘movement’ extremist
Legal Events 11/20/2023The Russian Justice Ministry on Friday said it has filed a lawsuit with the nation’s Supreme Court to outlaw the LGBTQ+ “international public movement” as extremist, the latest crippling blow against the already beleaguered LGBTQ+ c...
-
Sydney court postpones extradition hearing of former US military pilot
Legal Events 10/24/2023A Sydney court on Monday postponed an extradition hearing for a former U.S. military pilot accused of illegally training Chinese aviators until May as his lawyers attempt to further build their case.Boston-born Dan Duggan, 55, was scheduled to fight ...

Our Eugene Oregon Bankruptcy Practice
Since 2005, Erin Uhlemann has helped individuals and families facing financial difficulties file for bankruptcy relief. Erin's compassion and understanding of the law have helped hundreds of Oregonians achieve a financial fresh start. She started Willamette Valley Bankruptcy to focus on helping clients with bankruptcy and debt issues in the Lane County Area. Erin understands that choosing a bankruptcy attorney who makes you feel comfortable and confident can be as difficult as deciding whether to file a bankruptcy case. Because she knows that filing bankruptcy is not something that you planned to do or look forward to doing, Erin strives to make the process as easy as possible.
Because most people facing bankruptcy do not have extra money to pay fees, Willamette Valley Bankruptcy offers low upfront fees and will work with you to set up affordable payment plans to pay attorney fees and court filing fees. Consultations are always free so that you can get the answers you need before making any sort of financial commitment. If you have questions about attorney fees and payment plans, you can call or email today to get these questions answered.