Google to pay $700 mn to settle antitrust lawsuit

[A screen capture of Google’s blog]

Google LLC recently revealed that its parent Alphabet Inc. offered to pay $700 million, as well as make significant changes to its app store to address antitrust concerns related to its app store ecosystem, in a settlement with 36 U.S. states. The details, filed with the court, include the founding of a $700 million fund, with $630 million allocated for consumers and $70 million for the 36 states that accused Google of using monopoly power to dominate the market in a class-action lawsuit. The agreement signifies a significant move by Google to address the antitrust challenges it has been facing.

The company last week lost a case brought by game maker Epic Games, Inc., where it was alleged that Alphabet had made extraordinarily high profits from app developers by exerting its dominance.

As part of the settlement, Google will expand the choices available within its app store ecosystem. Original Equipment Manufacturers (OEMs), such as device manufacturers and mobile carriers, will continue to provide users with choices between downloading their app store or Google Play on the initial screen. Google will also make it easier for users to download apps directly from app developers’ websites without using an online store such as Google Play.

For app and game developers, Google will also introduce more flexibility by permitting alternative payment options alongside the existing Google Play Store payment system. This approach has been tested in the United States for over a year and is already implemented in South Korea. With this flexibility, developers can now display a wider range of pricing options when creating in-app payment pages.