Google has recently been hit with a colossal financial penalty, resulting from a series of legal battles that spotlighted its dominant market behavior. The initial trigger was a lawsuit initiated four years ago by the US Department of Justice and multiple states, accusing Google of monopolistic practices with its Android operating system and app access. Adding to the company’s legal woes, in 2021, Epic Games and other developers filed a similar lawsuit, targeting Google’s control over app payments within its Play Store. According to Forbes, this was largely due to Google mandating that game developers use its in-house payment system, which includes a 15 to 30 percent transaction fee.
The saga seemed to reach a resolution in September 2023 when Google settled the initial lawsuit; however, specifics of the agreement weren’t disclosed publicly. It wasn’t until December 2023, following a jury’s decision that Google had indeed broken US antitrust laws, that the company opened up about the terms of the settlement. Alongside the legal resolutions, Google also announced significant changes to its Play Store operations, reducing its cut from transactions to 11 to 26 percent and introducing more flexible payment and pricing options.
Developers now have the liberty to set varied prices within their apps without needing Google’s approval, a move that enhances competitive pricing directly benefiting the consumers. Furthermore, Google is set to distribute a substantial $630 million “for the benefit of consumers according to a Court-approved plan” plus an additional $70 million to a state-administered fund.
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For consumers who made purchases via the Play Store from August 16, 2016, to September 30, 2023, there’s a monetary compensation awaiting, with eligible users receiving at least $2 from the settlement. Fortunately, eligible consumers will be automatically notified about how to claim their share, simplifying the process.
This recent $630 million payout comes on the heels of another massive settlement last year, where Google had to pay $400 million to both Android and iPhone users following a privacy breach scandal—certainly a tough financial hit for the tech giant.