A bipartisan coalition of 53 attorneys general announced a $700 million agreement with Google for monopolistic conduct in its app store that increased costs for consumers and app developers.
Article continues below
This agreement resolves a lawsuit filed by a coalition of attorneys general co led by the New York Attorney General Letitia James that alleged Google unlawfully maintained its monopoly over mobile app distribution and in-app payment processing for Android devices, and used its monopoly power to charge consumers as much as 30 percent for purchasing apps and making in-app purchases.
The agreement requires Google to pay restitution to consumers and make changes to how it allows app developers to sell products on Android devices.
As a result of this agreement, 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 and were harmed by Google’s anticompetitive practices.
Google will also pay the states $70 million for their sovereign claims. Eligible consumers will be notified of the settlement and will receive automatic payments through PayPal or Venmo, or they can elect to receive a check or ACH transfer.
In addition, Google must make changes to stop its anticompetitive practices that harm consumers and app developers.
Under the agreement, Google is required to:
• 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 into contracts or enforce provisions 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 five 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.
The lawsuit was led by the Attorneys General from California, North Carolina, Utah, Tennessee, and New York and includes the attorneys general of all 50 states, the District of Columbia, and the territories of Puerto Rico and the Virgin Islands. ■