Alphabet plans to settle Google Play dispute for $700 million

Alphabet plans to pay $700 million to amend Google Play policies to settle lawsuits alleging its app store illegally controls the Android system’s application market, ending antitrust lawsuits brought by prosecutors and consumers in some 36 states..

The agreement, contained in a document submitted to the court, calls for amendments to Google Play policies aimed at reducing barriers to competition in the application distribution and payment service markets..

The lawsuits, filed in a federal court in California, threaten billions of dollars in revenue from the sale and distribution of applications through the Google Play platform.».

Wilson White, Google’s vice president of government affairs and public policy, said in a statement that the settlement builds on Android’s choice and flexibility, maintains strong security protections, protects Google’s ability to compete with other operating system developers and invests in the Android ecosystem. For users and developers..

This month, a federal jury in San Francisco upheld allegations by Epic Games that Google Play’s policies on app distribution, payments and fees were illegal..

In a lawsuit they filed in 2021, prosecutors accused Google of using anti-competitive tactics to ensure developers had no other way to reach users than Google Play.».

A separate class action lawsuit filed on behalf of about 21 million consumers alleged that Google inflated the prices of Android applications by charging 30% of the value of transactions made through Google Play.».

Alphabet announced an initial settlement with states and consumers last September, without disclosing financial details. The document submitted on Monday said all 50 states, the capital and two US territories joined the settlement agreement. The technology company separately settled lawsuits filed by Match Group ahead of hearings against Epic in San Francisco in early November..

The settlement establishes a joint fund worth $630 million for consumer welfare, and $70 million to settle states’ claims for penalties, compensatory damages, and refunds of wrongful gains and fees..