Google said today it will pay $700 million – $630 million to US consumers and $70 to a fund used by US states – in a settlement over the Play Store reached in September.
In September, the company reached a tentative settlement in a class action lawsuit originally filed by US states and consumers in 2021. However, the search giant announced details of the settlement today. The complaint was highlighted Google’s monopoly on distributing applications on Android Through the Play Store.
In November 2022, Google began a beta trial of its User Choice billing program in the United States, which allowed developers to use alternative payment methods for in-app purchases. The company said today that it will expand the program in the country as part of the settlement. Google said developers will be able to display different costs for an in-app purchase based on the billing method chosen by the customer.
The company too He said It would make the sideloading process simplified. However, he confirmed that the company will change the messaging around sideloading.
Currently, users see a pop-up with warning text when they try to download an app. This pop-up takes users to the Settings screen where they can install apps from “Unknown Sources.” Google will have to merge these two displays as part of the settlement. The agreement stipulates that the company will have to maintain this side-loading flow for at least five years without changing it.
“While we stress that it is critical to our safety efforts to inform users that sideloading on a mobile phone may come with unique risks, as part of our settlement, we will further simplify the sideloading process and update language that informs users about these potential risks.” Download “Apps are live from the web for the first time,” said Wilson White, vice president of government affairs and public policy at Google.
Google noted in its report Blog post Which Android 14 also made The application upgrade process is easier With more controls for third party app stores via API.
This development happened at a time when Google was losing its antitrust battle with Epic. Google plans to appeal the ruling and confirmed in a blog post today that it “did not recognize the choice and competition that our platforms provide,” but the case “is not over yet.”
The trial revealed Google’s deals with companies such as Spotifywhich did not pay any commission on the Play Store for in-app purchases.
The Epic v Google experience showed that the search company knows this The 4% discount offered through user choice billing is not enough for developers To switch to other operators. Because developers will also need to pay fees for those processors, which may be more than the 4% offered by Google.
In response to Google’s settlement with the state attorney general, Corey Wright, vice president of public policy at Epic Games, said this payment “will not bring any real relief” to consumers.
“Consumers will continue to overpay for digital goods as a result of Google charging an ultra-competitive 30% fee for Google Play invoices or a 26% spam fee on top of payments that Google is not involved in processing. Developers will also remain restricted in how they distribute their apps, and developers will be forced to Those who choose to use a third-party payment option are forced to use Google’s deceptively named “user choice billing” system rather than have creative freedom in the design of their apps. “Payment systems,” Wright said in a statement.
Epic added in Blog post That in the next phase of the case with Google, the gaming company will look for “meaningful remedies to truly open up the Android ecosystem.”