Google agrees to pay $700 million in Play store settlement

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Google logo on office building in Silicon Valley

Google owner Alphabet has agreed to a $700 million settlement and will implement changes to its app store, Google Play, to resolve an antitrust lawsuit. 

The settlement resolves allegations by a group of states Google operated Google Play as an illegal monopoly.

The complaint says Google hindered competition from other app distributors on devices using the Android operating system

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Alphabet will contribute $630 million to a settlement fund benefiting consumers and pay an additional $70 million to a fund used by the states.

Developers will now have the option to use an alternative billing system to Google Play’s billing option, a change that has been piloted for over a year. 

The settlement also mandates that Alphabet simplify the process of downloading apps directly from developers’ websites without relying on online stores like Google Play.

This settlement is a response to a 2021 complaint filed by 36 states and the District of Columbia.

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It accuses Google of creating barriers to alternative in-app payment options and discouraging other app distribution methods. 

The agreement follows a recent legal setback for Google.

“We’re pleased to reach an agreement that builds on that foundation”

It lost a case against videogame maker Epic Games, which claimed that Google had unfairly profited from app developers.

While Alphabet plans to challenge the verdict in the Epic Games case, it faces additional legal challenges, including an ongoing antitrust case related to its search engine. 

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The Justice Department alleges that Google violated US antitrust laws by sidelining rivals through agreements. 

In early September, Alphabet and a group of state attorneys general, led by Utah, announced a tentative settlement.

However, they didn’t disclose the terms of the agreement.

Alphabet said its operating system and app store provide more choices for consumers than competitors.

The firm emphasizes its commitment to improving Android and Google Play.

Alphabet said: “We’re pleased to reach an agreement that builds on that foundation.”

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