CT part of $700 million settlement with Google on Play Store issues
Attorney General William Tong and 52 other attorneys general Tuesday said a $700 million agreement has been reached with Google in a lawsuit about Google’s alleged “anticompetitive conduct with the Google Play Store.”
“Today’s settlement is a loud and clear message to Big Tech—attorneys general across the country are unified, and we are prepared to use the full weight of our collective authority to ensure free and fair access to the digital marketplace,” said Attorney General William Tong, in an emailed statement.
“Google lured developers to its Android platform with promises of an open source marketplace. They broke that promise. As soon as they amassed a customer base, Google deployed unfair and unlawful restraints and restrictions that locked out competition and forced use of their own products,” Tong said. “Our settlement today will send money directly back to consumers and forces powerful reforms to restore fair competition to the Google Play marketplace. This is the first resolution in a series of enforcement actions attorneys general are taking against Google over its illegal monopoly practices and anticompetitive exclusionary contracts and conduct. I expect 2024 will be an active and aggressive year for attorneys general taking on Big Tech.”
Tong said 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.”
Tong also said “Google will pay the states an additional $70 million for their sovereign claims. People eligible for restitution do not have to submit a claim – they will receive automatic payments through PayPal or Venmo, or they can elect to receive a check or ACH transfer. More details about that process will be forthcoming. The agreement also requires Google to make their business practices more procompetitive in a number of important ways.”
An email seeking comment was sent to Google.
Wilson White, Google’s vice president of Government Affairs & Public Policy, said in an online post Monday: “Google will pay $630 million into a settlement fund to be distributed for the benefit of consumers according to a Court-approved plan and $70 million into a fund that will be used by the states.”
White also said, “Android and Google Play provide choices and opportunities for innovation that other platforms we compete against simply don’t – from allowing for multiple app stores and avenues of app distribution to piloting new ways for users to pay for in-app purchases. We’re pleased to reach an agreement that builds on that foundation and we look forward to making these improvements that will help evolve Android and Google Play for the benefit of millions of developers and billions of people around the world. These proposed changes will go into effect after the Court formally approves the settlement.”
Tong said the attorneys general sued Google in 2021 alleging that “Google unlawfully monopolized the market Android app distribution and in-app payment processing. Specifically, the states claimed that Google signed anticompetitive contracts to prevent other app stores from being preloaded on Android devices, bought off key app developers who might have launched rival app stores, and created technological barriers to deter consumers from directly downloading apps to their devices. The states announced a settlement in principle on September 5, 2023, and today released the finalized terms of that deal.”
Android and Google Play have continuously evolved to provide more flexibility and choice in response to feedback from developers and regulators, as well as intense competition from Apple and app stores across the open Android ecosystem,” White wrote. “We demonstrated this in the recent trial and were disappointed that the verdict did not recognize the choice and competition that our platforms enable. While we are challenging that verdict and our case with Epic is far from over, we remain committed to continually improving Android and Google Play.
Check back for updates.