Google has agreed to pay the sum of $700 million as compensation to US Android app users in a fair competition suit slammed on Play Store by US state lawyers. While the agreement was reached in September, its details have just been made public.
The US state lawyers argue that Google overcharges consumers for apps distributed on Android devices and imposes extra fees for in-app transactions. Court documents show that Google takes 15%-30% commission on these in-app purchases, thus inflating prices and ultimately resulting in substantial profits for Google.
Google strongly denies any wrongdoing and opted to settle the case.
Under the terms of the settlement, $630 million will be allocated to a fund for US consumers, while an additional $70 million will go to a fund intended for US states, pending the final approval of a judge.
Eligible consumers are likely to receive a minimum payment of $2, with the potential for higher compensation based on their expenditure within Google Play Store between August 16, 2016, and September 30, 2023. Customers will be notified on how to retrieve their compensation.
Google has also agreed to streamlining the process for downloading apps. Over the next five years, consumers will be able to download and install apps from sources other than the Google Play Store. Play Store will also refrain from displaying “scare screens,” when alternative choices are being used.
Android developers will also be able to provide other payment options directly to app users instead of relying on Play Store’s automatic transaction process and its commission structure. This move aims to create a more open and accessible environment within the app store ecosystem.
