The agreement was struck in September between the parties but was filed late Monday in a federal court in San Francisco, our colleague Lauren Sforza reported.
The settlement includes all 50 states and allocates a $630 million payout for U.S. consumers who used a payment system in Google’s Play store. The states allege the system magnified prices for in-app purchases.
Google’s store collects 15 to 30 percent of commission on in-app purchases.
“The Complaint also alleges state-law antitrust and consumer protection claims. Specifically, the States allege that Google has unreasonably restrained trade and monopolized Android app distribution and payment-processing services through anticompetitive conduct,” the settlement agreement states.
Those who are eligible will receive at least $2. Additional payments may be issued depending on how those eligible spent on Google Play from Aug. 16, 2016, through Sept. 30, 2023.
Google will also need to pay $70 million to the states in penalties and other costs. The settlement needs to be approved by a judge.
Google’s vice president of government affairs and public policy Wilson White in a blog post said the settlement “builds on Android’s choice and flexibility, maintains strong security protections, and retains Google’s ability to compete with other OS makers.”
White said Google will allow app and game developers to implement an alternative billing system alongside Google Play’s existing one.
“Android and Google Play provide choices and opportunities for innovation that other platforms we compete against simply don’t – from allowing for multiple app stores and avenues of app distribution to piloting new ways for users to pay for in-app purchases,” he wrote in the post.
Read more in a full report at TheHill.com.
