AG Jennings Announces $700-million Settlement with Google over Play Store Misconduct
Attorney General Kathy Jennings and a bipartisan group of 52 other attorneys general have announced a $700-million agreement with Google. This lawsuit is about Google’s anti-competitive conduct with the Google Play Store.
Google will pay $630-million in restitution, 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 anti-competitive practices. Google will pay the states an additional $70-million for their sovereign claims.
People eligible for restitution 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. The agreement also requires Google to make their business practices more pro-competitive.
Additional information from the AG’s release:
“Today’s agreement is a victory not only for the consumers affected by Google’s illegal monopoly, but for every consumer who benefits from a healthy market — including strong antitrust laws,” said Attorney General Jennings. “Delaware fought hard to secure substantial monetary damages and real changes in Google’s business practices that will help restore a more open and competitive marketplace. I’m grateful to our team and to our sister states who made it happen.”
The attorneys general sued Google in 2021 alleging that Google unlawfully monopolized the market Android app distribution and in-app payment processing. Specifically, the States claimed that Google signed anti-competitive 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 states announced a settlement in principle on September 5, 2023, and today released the finalized terms of that deal.
The settlement requires Google to reform its business practices in the following ways:
- 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 the 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 5 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 monitor who will ensure that Google is not continuing its anti-competitive conduct for at least 5 years.
For much of this case, the attorneys general litigated alongside Epic Games and Match, two major app developers. Match announced a separate settlement earlier this year, while Epic Games took its case to trial. A jury unanimously found that Google’s anti-competitive conduct violated the federal antitrust laws early last week.
A copy of the settlement is available here. This settlement was secured for the DOJ by Deputy Attorney General Michael Undorf and Paralegal Zuri Ramsey, both of the Fraud and Consumer Protection Division’s Consumer Protection Unit.
