Google Settles $700 Million Antitrust Lawsuit, Promises Compensation and Competition Boost for Millions of Americans

Google has reached a $700 million settlement in an antitrust lawsuit, offering compensation to millions of Americans and committing to foster increased competition within its Google Play app store. The Alphabet Inc-owned company is set to pay $630 million directly to consumers across US states, with an additional $70 million allocated to a fund.

Over 100 million American consumers, spanning all 50 states, Washington DC, Puerto Rico, and the US Virgin Islands, are eligible to receive compensation from Google. This resolution, finalized in September, is now being reported and awaits final approval from a judge.

Under the terms of the settlement, more than 70 million consumers won't need to complete any paperwork to receive their compensation share, as the payments will be automatic. Eligible consumers include those who made in-app purchases or bought apps on Google Play between August 16, 2016, and September 30, 2023.

Lead plaintiff Utah and other states announced the settlement in September, with the details kept confidential until now. The settlement addresses allegations of Google overcharging consumers through in-app purchases and imposing restrictions on the Android app store. Despite admitting to no wrongdoing, Google has implemented "choice billing" in the US, allowing consumers alternative options for in-app purchases beyond the Play Store's billing system.

In addition to allegations of overcharging, Google was accused of employing anti-competitive tactics to stifle competition and coerce developers into using Google Play exclusively. This move aimed to reduce reliance on other platforms, although Google has not admitted to any wrongdoing in this case.

The settlement represents a significant development in the ongoing legal challenges faced by major tech companies regarding their market practices and competition policies.