Utah Announces Court Will Likely Approve $700 Million Google Play Store Settlement
SALT LAKE CITY, Utah— Utah Attorney General Derek Brown, the Utah Department of Commerce’s Division of Consumer Protection, and a bipartisan group of 52 other attorneys general today announced the court has indicated that it will approve notice of the states’ and consumers’ $700 million agreement with Google. This settlement resolves the Utah-led complaint against Google for its anticompetitive conduct concerning payment processing and app distribution within the Google Play Store.
The lawsuit, Utah et al. v. Google, claimed that Google used its power to enter into exclusive agreements that prevented companies from gaining access to key distribution channels. This resulted in higher prices and fewer choices for both developers and consumers. Google will have to pay consumers and substantially change its payment practices on the Google Play Store. Additionally, Utah is expected to receive around $10 million for its sovereign claim and costs.
“Google’s monopoly over the Play Store has hurt everyday Americans and small businesses by jacking up prices and limiting choices,” said Attorney General Brown. “The bulk of this $700 million settlement goes directly to consumers who were overcharged for in-app purchases. I’m proud Utah has been a leader on the national stage in holding Google accountable for its conduct.”
Google will pay $630 million, minus costs and fees, to consumers who made purchases on the Google Play Store between August 2016 and September 2023 and were harmed by Google’s anticompetitive practices. Consumers eligible for recoveries do not have to submit a claim. They will receive automatic payments through PayPal or Venmo, or they can elect to receive a check or ACH transfer.
Google will also pay the states an additional $70 million for their sovereign claims.
“Today marks an important milestone in restoring trust in the app store marketplace. This settlement addresses the harm caused to consumers by Google’s deceptive practices and paves the way for a more transparent and fairer environment for all users,” said Margaret Busse, Executive Director of the Utah Department of Commerce.
In July 2021, Utah led a bipartisan coalition of 37 attorneys general in suing Google, alleging that Google unlawfully monopolized the market for Android app distribution and in-app payment processing. Specifically, the states claimed that Google signed anticompetitive contracts to prevent other app stores from being preloaded on Android devices, bought off key app developers who might have launched rival app stores, and created technological barriers to deter consumers from directly downloading apps to their devices.
The coalition announced a settlement in principle on September 5, 2023, which has been pending before the court ever since. Additional details concerning notice and claims will follow. This outcome could not have been reached without the dedication and skill of Utah Assistant Attorneys General David N. Sonnenreich, Marie W.L. Martin, and others.
In addition to restitution to consumers, under the states’ settlement, Google will be required to reform its business practices to:
- Give all developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years.
- Allow developers to offer cheaper prices for their apps and in-app products for consumers who use alternative, non-Google billing systems for at least five years.
- Permit developers to steer consumers toward alternative, non-Google billing systems by advertising cheaper prices within their apps themselves for at least five years.
- Not enter contracts that require the Play Store to be the exclusive, pre-loaded app store on a device or home screen for at least five years.
- Allow the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years.
- Revise and reduce the warnings that appear on an Android device if a user attempts to download a third-party app from outside the Google Play Store for at least five years.
- Maintain Android system support for third-party app stores, including allowing automatic updates, for four years.
- Not require developers to launch their app catalogs on the Play Store at the same time as they launch on other app stores for at least four years.
- Submit compliance reports to an independent compliance professional who will ensure that Google is not continuing its anticompetitive conduct for at least five years.
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