Attorneys general across the country have reached a $700 million agreement with Google in a lawsuit about the Google Play Store, according to Connecticut Attorney General William Tong.
Google will pay $630 million in restitution, minus costs and fees, to consumers who made purchases on the Google Play Store between August 2016 and September 2023, according to the attorney general’s office.
People who are eligible for restitution do not have to submit a claim. They will receive automatic payments through PayPal or Venmo, or they can choose to receive a check or ACH transfer, according to Tong.
He said more details about that process will be forthcoming.
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Google will also pay the states an additional $70 million for their sovereign claims.
“Today’s settlement is a loud and clear message to Big Tech — attorneys general across the country are unified, and we are prepared to use the full weight of our collective authority to ensure free and fair access to the digital marketplace,” Tong said in a statement.
Attorneys general sued Google in 2021, alleging that the company unlawfully monopolized the market Android app distribution and in-app payment processing.
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"Android and Google Play have continuously evolved to provide more flexibility and choice in response to feedback from developers and regulators, as well as intense competition from Apple and app stores across the open Android ecosystem. We demonstrated this in the recent trial and were disappointed that the verdict did not recognize the choice and competition that our platforms enable. While we are challenging that verdict and our case with Epic is far from over, we remain committed to continually improving Android and Google Play," Google said in a statement.
The lawsuit claimed that Google signed anticompetitive contracts to prevent other app stores from being preloaded on Android devices, bought off key app developers who might have launched rival app stores, and created technological barriers to deter consumers from directly downloading apps to their devices.
The settlement requires Google to reform its business practices in the following ways:
- Give all developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years.
- Allow developers to offer cheaper prices for their apps and in-app products for consumers who use alternative, non-Google billing systems for at least five years.
- Permit developers to steer consumers toward alternative, non-Google billing systems by advertising cheaper prices within their apps themselves for at least five years.
- Not enter contracts that require the Play Store to be the exclusive, pre-loaded app store on a device or home screen for at least five years.
- Allow the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years.
- Revise and reduce the warnings that appear on an Android device if a user attempts to download a third-party app from outside the Google Play Store for at least 5 years.
- Maintain Android system support for third-party app stores, including allowing automatic updates, for four years.
- Not require developers to launch their app catalogs on the Play Store at the same time as they launch on other app stores for at least four years.
- Submit compliance reports to an independent monitor who will ensure that Google is not continuing its anticompetitive conduct for at least five years.
Google said that the details of a settlement reached in September with state attorneys general were filed publicly.
"Android and Google Play provide choices and opportunities for innovation that other platforms we compete against simply don't – from allowing for multiple app stores and avenues of app distribution to piloting new ways for users to pay for in-app purchases. We're pleased to reach an agreement that builds on that foundation and we look forward to making these improvements that will help evolve Android and Google Play for the benefit of millions of developers and billions of people around the world. These proposed changes will go into effect after the Court formally approves the settlement," the statement from Google goes on to say.
Following is the full statement from Google:
Android and Google Play have continuously evolved to provide more flexibility and choice in response to feedback from developers and regulators, as well as intense competition from Apple and app stores across the open Android ecosystem. We demonstrated this in the recent trial and were disappointed that the verdict did not recognize the choice and competition that our platforms enable. While we are challenging that verdict and our case with Epic is far from over, we remain committed to continually improving Android and Google Play.
"Today, the details of a settlement reached in September with state attorneys general were filed publicly. This settlement builds on Android's choice and flexibility, maintains strong security protections, and retains Google’s ability to compete with other OS makers, and invest in the Android ecosystem for users and developers. We're pleased to resolve our case with the states and move forward on a settlement that includes:
- Growing our commitment to app store choice: We have always allowed alternative app stores to be preloaded onto Android devices and for users to download alternative app stores directly. In fact, most Android devices ship with two or more app stores preloaded. The settlement with the attorneys general makes clear that OEMs can continue to provide users with options out of the box to use Play or another app store. We recently implemented features in Android 14 that will make third-party app stores work even better for users and let third-party app stores update apps more easily.
- Streamlining sideloading while prioritizing security: Unlike on iOS, Android users have the option to sideload apps, meaning they can download directly from a developer’s website without going through an app store like Google Play. While we maintain it is critical to our safety efforts to inform users that sideloading on mobile could come with unique risks, as part of our settlement we will be further simplifying the sideloading process and updating the language that informs users about these potential risks of downloading apps directly from the web for the first time.
- Expanding user choice billing to more people: App and game developers will be able to implement an alternative billing option alongside Google Play’s billing system for their U.S. users who can then choose which option to use when making in-app purchases. We have been piloting user choice billing in the U.S. for over a year and will now expand this option further.
- Expanding open communication on pricing: We have always given developers more ways to interact with their customers than iOS and other operating systems. For example, Google Play allows developers to communicate freely with their customers outside the app about subscription offers or lower-cost options available on a rival app store or the developer’s website. This openness has spurred competition and benefited consumers and developers. As part of user choice billing, which we’re expanding with today’s settlement announcement, developers are also able to show different pricing options within the app when a user makes a digital purchase.
- Contributing to a settlement fund: Google will pay $630 million into a settlement fund to be distributed for the benefit of consumers according to a Court-approved plan and $70 million into a fund that will be used by the states.
- Android and Google Play provide choices and opportunities for innovation that other platforms we compete against simply don't – from allowing for multiple app stores and avenues of app distribution to piloting new ways for users to pay for in-app purchases. We're pleased to reach an agreement that builds on that foundation and we look forward to making these improvements that will help evolve Android and Google Play for the benefit of millions of developers and billions of people around the world. These proposed changes will go into effect after the Court formally approves the settlement.
