ALBUQUERQUE, NM - Attorney General Rauìl Torrez, alongside a bipartisan coalition of 52 other attorneys general, announced a landmark $700 million settlement with tech giant Google, concluding a lawsuit centered on alleged anticompetitive practices related to the Google Play Store.
The legal action, initiated in 2021, accused Google of unlawfully monopolizing the Android app distribution and in-app payment processing market. The attorneys general contended that Google utilized anticompetitive contracts to thwart the preloading of alternative app stores on Android devices, enticed crucial app developers away from potential rival platforms, and erected technological barriers discouraging consumers from directly downloading apps to their devices. A settlement in principle was revealed on September 5, 2023, with finalized terms disclosed earlier this week.
As part of the settlement, Google will disburse $630 million in restitution, excluding expenses and fees, to consumers who made purchases on the Google Play Store from August 2016 to September 2023 and were adversely affected by Google's alleged anticompetitive behavior. An additional $70 million will be allocated to the states to address sovereign claims.
'Large corporations often believe they're untouchable, or that the rules don't apply to them – this lawsuit and the resulting agreement clearly shows that this isn't the case,' stated AG Torrez. 'In an ever-evolving, technologically advanced world, my office will continue to hold companies accountable and ensure they abide by fair business practices.'
Under the terms of the settlement, Google is compelled to implement several significant reforms in its business practices, including:
• Allowing developers to receive payments via in-app billing, other than Google Play Billing, for a minimum of five years.
• Granting developers the ability to offer lower prices for their apps and inapp products to consumers using non-Google billing systems for at least five years.
• Permitting developers to promote alternative billing systems within their apps, advertising lower prices for at least five years.
• Prohibiting contracts that mandate the Play Store as the exclusive, preloaded app store on devices or home screens for at least five years.
• Facilitating the installation of third-party apps on Android phones from sources outside the Google Play Store for a minimum of seven years.
• Reducing warnings that appear on Android devices when users attempt to download third-party apps from sources outside the Google Play Store for at least five years.
• Sustaining Android system support for thirdparty app stores, including automatic updates, for four years.
• Eliminating the requirement for developers to launch their app catalogs on the Play Store simultaneously with other app stores for at least four years.
• Submitting compliance reports to an independent monitor tasked with ensuring Google refrains from engaging in anticompetitive conduct for at least five years.
The lawsuit was spearheaded by Attorneys General from North Carolina, Utah, Tennessee, New York, and California, with participation from attorneys general representing all remaining states, the District of Columbia, and the territories of Puerto Rico and the Virgin Islands.
Individuals eligible for restitution will not be required to file a claim; automatic payments will be processed via PayPal, Venmo, check, or ACH, as preferred. Further details regarding this reimbursement process will be released in due course.