Google is set to pay $700 million and has agreed to open up its Play app market to greater competition. This is in accordance with the provisions of the federal court filing on Monday, December 18, involving an antitrust settlement with the United States and its consumers.
App Store Issues
The settlement ends long-running claims that Google damaged competition via its app store rules and fees. According to CNN, it will compensate about 102 million US users in the amount of $630 million. Dozens of states that took part in the lawsuit will get the remaining $70 million.
Approximately 71.4 million customers will be eligible to profit from the deal without having to register a claim, as per the provisions of the settlement. A payout of $2 or more will be sent to each qualifying consumer whose Google Play Store purchases fall within the period from August 16, 2016, to September 30, 2023.
In the midst of widespread criticism of Google's handling of Android app distribution and its ties to third-party developers, this deal has the potential to significantly alter the company's app store operations.
Last week, a federal jury found that Google Play constituted a monopoly in violation of antitrust laws. Epic Games, creators of the popular video game Fortnite, and the plaintiffs engaged in a protracted legal dispute that culminated in that decision. However, Google has filed an appeal against the ruling.
Settlement Terms
The settlement mandates a number of changes to Google's app store policies for a certain duration, in addition to payments to states and customers.
For instance, Google has committed to expanding a pilot program that gives customers the option to pay for in-app purchases using either its own billing system or a third-party payment channel for a period of five years. Google has been testing the concept, which they term "user choice billing," all around the globe for over a year now. Google offers a small discount to developers who accept money using an external billing system.
The settlement also provides app developers with a multi-year commitment to inform customers about promotions, other charging systems, Google's commissions, and methods to circumvent the tech giant's costs.
Additionally, Google needs to make it easier for people to install programs from third-party websites and unofficial app stores. One way they may do this is by modifying the warning messages that users see when they try to do so. In an effort to foster an open Android environment, Google has stated its support for this practice known as sideloading. However, the tech giant has cautioned that this may pose security or privacy issues as it does not evaluate software that is not part of its app store.
