Tech giant, Google has been ordered to pay out millions of dollars to consumers following a series of antitrust lawsuits.
Four years ago, the US Department of Justice and several states accused Google of abusing its power over app distribution on Android devices. In 2021, Epic Games and other developers also filed suit against the company.
The key issue was Google’s requirement that developers use its proprietary payment system for apps downloaded from the Play Store, where Google takes a 15-30% cut of transactions.
After a jury found Google in violation of US antitrust laws in December 2023, the company has agreed to a $700 million settlement. This includes a $630 million payout “to be distributed for the benefit of consumers” and an additional $70 million for use by the states.
Under the court-approved plan, eligible consumers who made a purchase on the Google Play Store between August 16, 2016 and September 30, 2023 will receive a minimum of $2. Consumers will be automatically notified about how to claim their portion of the settlement.
In addition, Google is lowering its commission on Play Store transactions to 11-26% and allowing developers to offer different pricing options outside of Google’s billing system.
This latest payout comes after Google was forced to pay $400 million to Android and iPhone users last year over a separate privacy breach case. The tech giant continues to face intense scrutiny over its market dominance and business practices.
