Google Settles Antitrust Lawsuit with $700 Million and Concessions
Google has settled an antitrust lawsuit, agreeing to pay $700 million and make several concessions in how it operates its app store in the United States. The settlement arises from a lawsuit filed by 50 state attorneys general, similar to the case brought by Epic Games. Key elements of the settlement include:
- $700 Million Payment:
- $629 million will go to consumers who may have overpaid for apps or in-app purchases through Google Play.
- $70 million will go to the states for their use.
- $1 million is allocated for settlement administration.
- Changes in App Store Operation:
- For 7 years, Google will enable Android to allow the installation of third-party apps through means other than Google Play.
- For 5 years, Google will allow developers to offer an alternative in-app billing system alongside Google Play Billing.
- For 5 years, Google won’t require developers to offer their best prices exclusively through Google Play.
- For 4 years, Google won’t mandate simultaneous releases on Google Play and other stores or feature parity.
- For 5 years, exclusivity of Google Play on a phone or its homescreen will not be required.
- For 4 years, Google won’t prevent OEMs from granting installer rights to preloaded apps.
- For 5 years, Google won’t require consent before an OEM preloads a third-party app store.
- Sideloaded App Stores and APIs:
- For 4 years, Google will let third-party app stores update apps without user approval.
- For 4 years, sideloaded app stores can use Google’s APIs and feature splits to help install apps.
- User Choice Billing:
- For 5 years, Google will let User Choice Billing participating developers inform users about better pricing elsewhere.
- For 5 years, Google will not prohibit developers from disclosing service or other fees associated with Google Play or its billing system.
- Communication and Promotions:
- For 6 years, developers can use contact information obtained outside the app or in-app (with user consent) to communicate with users.
- For 6 years, consumption-only apps can inform users about better prices without linking to an outside website.
- Consolidation of Scare Screens:
- For 5 years, Google will consolidate its two sideloading “scare screens” into a single user prompt.
However, many of these concessions come with expiration dates, and some critics argue that they are not significant changes. The settlement is pending court approval.