Court expected to approve $700M settlement with Google over Play Store practices

Derek Brown, Attorney General of Utah
Derek Brown, Attorney General of Utah
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Utah officials announced that a federal court is expected to approve a $700 million settlement with Google, resolving allegations that the tech company engaged in anticompetitive practices in its Play Store. The case, led by Utah Attorney General Derek Brown and joined by 52 other attorneys general, accused Google of restricting competition in app distribution and payment processing.

The lawsuit claimed that Google entered into exclusive agreements that blocked competitors from accessing key distribution channels. As a result, developers and consumers faced higher prices and fewer choices. Under the settlement terms, Google will pay $630 million—after costs and fees—to consumers who made purchases on the Google Play Store between August 2016 and September 2023. Eligible consumers will automatically receive payments via PayPal or Venmo unless they opt for a check or ACH transfer.

Utah expects to receive about $10 million as part of its sovereign claim and costs. An additional $70 million will be paid to the states for their claims.

“Google’s monopoly over the Play Store has hurt everyday Americans and small businesses by jacking up prices and limiting choices,” said Attorney General Brown. “The bulk of this $700 million settlement goes directly to consumers who were overcharged for in-app purchases. I’m proud Utah has been a leader on the national stage in holding Google accountable for its conduct.”

Margaret Busse, Executive Director of the Utah Department of Commerce, commented: “Today marks an important milestone in restoring trust in the app store marketplace. This settlement addresses the harm caused to consumers by Google’s deceptive practices and paves the way for a more transparent and fairer environment for all users.”

The legal action began in July 2021 when Utah led a bipartisan coalition of 37 attorneys general suing Google for allegedly monopolizing Android app distribution and payment processing markets. The states alleged that Google prevented rival app stores from being preloaded on Android devices, discouraged developers from launching competing stores, and erected technical barriers against direct downloads.

As part of the agreement, Google must change several business practices over at least five years. These changes include allowing developers to use alternative billing systems within apps; permitting advertising of lower prices when using non-Google billing; ending exclusive contracts requiring only Play Store preloading; allowing third-party app installations outside the Play Store; reducing warnings about downloading external apps; maintaining support for third-party app stores including automatic updates; not requiring simultaneous launches across all stores; and submitting compliance reports to an independent professional.

Further details about consumer notice and claims are expected soon.

This outcome was achieved with contributions from Utah Assistant Attorneys General David N. Sonnenreich, Marie W.L. Martin, among others.



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