Google has agreed to pay $700 million and allow for greater competition in its Play app store.
In a statement, the company said, “Google will pay $630 million into a settlement fund for consumers and $70 million into a fund that will be used by states”.
Google was accused of overcharging customers by imposing illegal restrictions on app distribution on Android devices and charging excessive fees for in-app purchases. It made no admission of guilt.
The settlement still needs to be approved by a judge.
The settlement was announced in September by lead plaintiff Utah and other states, but the details were kept confidential ahead of Google’s related trial with ‘Fortnite’ creator Epic Games. A federal jury in California agreed with Epic last week that aspects of Google’s app business were anticompetitive.
In a statement, Wilson White, Google’s vice president of government affairs and public policy said, “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 business stated that it was expanding app and game developers’ ability to provide users with an additional billing option for in-app purchases in addition to Play’s billing system. Google said it had been testing choice billing in the U.S. for more than a year.
As part of the settlement, Google stated that it would make it easier for customers to get apps straight from developers.
Next year, Epic will seek U.S. District Judge James Donato, who is hearing both lawsuits, to issue an order requiring Google to make improvements to its Play store.
Google is also being sued over its search and digital advertising practices. In those situations, it has denied any wrongdoing.
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