December 21, 2023
Anthony Behar/SIPA USA
Google will pay $700 million to settle a lawsuit that accused it of unlawfully stifling competition to position its Google Play app store over alternative options on its Android mobile operating system.
Google will pay millions of dollars in restitution to Android users in Pennsylvania and New Jersey as part of a $700 million settlement to a lawsuit that accused the tech giant of using anticompetitive practices in its mobile app store, according to the states' attorneys general.
The money will be distributed to consumers who made purchases in the Google Play app store between August 2016 and September 2023. Eligible consumers do not have to submit individual claims. Instead, they will automatically be notified via email and then given the option to receive payment via PayPal, Venmo, paper check or direct deposit.
More than 71 million people nationwide are expected to receive payments as part of the legal settlement, according to a court filing.
New Jersey was among a group of states that filed suit against Google in 2021, alleging that the company engaged in monopolistic practices to stifle competition and unfairly position its own app store and in-app payment system over alternative options on its Android mobile operating system. Ultimately, 53 states and territories, including Pennsylvania, joined the litigation.
Android currently has about 41% of the mobile operating system marketshare in the U.S., according to StatCounter. Apple's iPhone makes up about 58% of the U.S. market.
As part of the settlement, Pennsylvania will receive $20.58 million to distribute to consumers, Attorney General Michelle Henry said. New Jersey did not disclose the amount it is receiving.
"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," Henry said. "This settlement holds this mega company accountable for practices that inflated prices and stifled competition to the detriment of consumers."
Google will be required to make it easier for Android users to find and download mobile apps from sources other than the Google Play store and also let app developers more easily implement non-Google payments for in-app purchases and entice consumers to use those alternatives with lower prices.
"Going forward, we are requiring Google to reform their business practices so that they can no longer hide behind opaque contracts and pricing," New Jersey Attorney General Matthew Platkin said.
The settlement comes just over a week after Google lost a lawsuit filed by Fortnite video game developer Epic Games, which accused Google of monopolistic practices in distributing and monetizing mobile apps. Google has said it plans to appeal the verdict.
