NICOLAS MAETERLINCK
- Google is paying $700 million as part of its settlement deal with states over its app store practices.
- The company said it would allow developers to charge users directly, without going through Google.
- The deal may act as a template for its other legal challenges, per the NYT.
A week after Google's loss to Epic Games in a landmark antitrust trial, Google has announced the terms of its settlement of the 2021 lawsuit brought against it by state attorneys general over its app store practices.
The antitrust suit alleged that Google had unlawfully dominated the Android mobile applications market and overcharged consumers.
The company said on Monday that it would pay $700 million, and change its Google Play app store policies to allow developers to circumvent Google — which took a 15 to 30% commission — and charge consumers directly.
Of the $700 million settlement fund, $630 million will be distributed to consumers according to a court-approved plan, while the remaining $70 million will be paid out to the states.
Additionally, Google said it would allow users to download apps from developers without going through the Google Play Store. The company added that it would also allow developers to show different pricing options to consumers.
This settlement was first announced in September, but its details were not revealed until Monday.
Google is aiming to use this settlement as a template for resolving its issues with other critics of its app store policies, including Fortnite creator Epic Games, The New York Times reported, citing a person familiar with the matter.
A jury ruled in favor of Epic Games in its landmark case against Google last week, and found that Google had violated antitrust law by holding an illegal monopoly in its Google Play store.
"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," Google said in its Monday announcement.
However, Google's antitrust woes extend beyond its app store. The company is still facing a suit from the Department of Justice accusing it of anticompetitive practices with its search engine business.
The unintentional disclosure that Google paid Apple 36% of its Safari search revenue — to maintain its status as the default search engine on Safari — led Google's lawyer to "visibly cringe."