Level Play-ing field — Googles loss to Epic Games leads to $700M settlement with users, states Play Store users can expect at least $2 in “unnecessary” fees refunded.
Ashley Belanger – Dec 19, 2023 3:38 pm UTC EnlargeSOPA Images / Contributor | LightRocket reader comments 15
After Epic Games proved that Googles Android app store monopoly violates antitrust law, Google has agreed to pay a $700 million settlement with US states and consumers, Reuters reported.
Once a judge approves the settlement, the largest chunk$630 millionwill go to consumers who allegedly were hit with unnecessary fees for in-app transactions. Google has not admitted to any wrongdoing, but each eligible consumer will receive at least $2, and some will receive more. Individual payouts will vary, depending on how much consumers spent in the Google Play Store between August 16, 2016 and September 30, 2023.
The remaining $70 million will go to states that joined the settlement, which includes all 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands.
In addition to claims of overcharging customers, Epic Games had accused Google of unlawfully restricting the distribution of apps on Android devices. Through the settlementwhich Google’s vice president of government affairs and public policy, Wilson White, said was announced in September but kept confidential until yesterdayGoogle has also agreed to allow for more competition in its app store.
In a Google blog, White wrote that Google would be taking four steps to expand competition in the Google Play Store.
First, Android users can expect more app store choices. Google has promised to continue providing options to pre-load alternative app stores and make it easier to use them, recently implementing 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.”
Google has also simplified the process for Android users to sideload apps without going through an app store, but instead downloading apps directly from a website. Advertisement
“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,” White wrote.
Perhaps most significantly for both Android developers, though, Google has agreed to take two steps that will give developers more control over managing in-app purchases and more opportunities to communicate deals directly with users.
Those efforts, Wilson said, include expanding on a pilot allowing developers to provide “an alternative billing option alongside Google Plays billing system for their US users, who can then choose which option to use when making in-app purchases.” To spur competition, Google will also allow “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 developers website.”
“As part of user choice billing, which were expanding with todays settlement announcement, developers are also able to show different pricing options within the app when a user makes a digital purchase,” Wilson wrote.
Google still plans to challenge the verdict, White wrote. He noted that Google was “disappointed that the verdict did not recognize the choice and competition that our platforms enable” and called the Epic case “far from over.”
In the meantime, Google’s loss appears to have resulted in additional wins for Android users seeking to limit fees and find the best app deals. Wilson said that recent updates resulting from the settlement will benefit “millions of developers and billions of people around the world.”
“This settlement builds on Android’s choice and flexibility, maintains strong security protections, and retains Googles ability to compete with other OS makers, and invest in the Android ecosystem for users and developers,” White wrote. “We’re pleased to resolve our case with the states.” reader comments 15 Ashley Belanger Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience. Advertisement Channel Ars Technica ← Previous story Related Stories Today on Ars
