PENNSYLVANIA — Tech giant Google has agreed to a $700 million settlement over anticompetitive practices in its Google Play Store, announced Attorney General Michelle Henry. The settlement includes 52 other Attorneys General, with Pennsylvania set to receive an estimated $20.58 million.
The lawsuit claimed that Google unlawfully monopolized the market for app distribution and in-app payment processing on Android devices. The company allegedly prevented other app stores from being preloaded on Android devices and created barriers discouraging consumers from directly downloading apps outside the Play Store.
“Google used unlawful practices to quash competitors and prime positioned its app store and payment processing for consumers, many of whom were not even aware of other options,” Attorney General Henry said. “This settlement holds this mega company accountable for practices that inflated prices and stifled competition to the detriment of consumers.”
The funds will be distributed to consumers who made purchases on the Google Play Store between August 2016 and September 2023, without the need for them to submit claims. Automatic payments will be made through PayPal or Venmo, or consumers can opt for a check or ACH transfer. Information for eligible consumers will be provided by Google to a claims administrator appointed by the state Attorneys General.
In addition to the monetary settlement, Google will also be required to reform its business practices. The changes include allowing developers to use non-Google in-app billing systems, permitting developers to advertise cheaper prices within their apps, and refraining from entering contracts that make the Play Store the exclusive pre-loaded app store on a device. Google will also have to allow the installation of third-party apps from outside the Google Play Store and reduce warnings for users attempting to download these apps.
These reforms, which aim to create a more competitive marketplace, are to be implemented for periods ranging from four to seven years. An independent monitor will oversee Google’s compliance with these reforms.
The lawsuit was led by the Attorneys General from North Carolina, Utah, Tennessee, New York, and California. It was joined by Attorney General Henry and all remaining states, the District of Columbia, Puerto Rico, and the Virgin Islands. The settlement aims to send a strong message to tech companies about the consequences of anticompetitive behavior and promises to bring more competition and fairness to the app marketplace.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.