102 Million Americans are Eligible for Google's $630M Lawsuit Settlement

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Android & the Google Play StorePhoto byJoe Hindy (via Android Authority)

If you've made purchases through the Google Play Store between August 16, 2016, and September 30, 2023, you may be eligible to receive compensation depending on your spending.

Approximately 102 million U.S. consumers will be eligible to benefit from this settlement, with a total compensation of $630 million.

This landmark settlement signifies an important milestone in the ongoing discussion around fairness and competition in the app store industry. Let's dive deeper into the details of this lawsuit settlement and its potential impact on Google's app store business and consumers like you.

Google will pay consumers from all 50 states to settle a lawsuit over its app store practices

The states wrote in a court filing late Monday that they estimate at least 70 percent of eligible consumers, or 71.4 million people, will receive automatic payments without having to file a claim.

The Google lawsuit settlement signifies a milestone development in the app store industry. In response to long-standing allegations of competition harm, Google has agreed to pay $630 million in compensation to eligible consumers who were affected by the company's app store terms and fees. This legal settlement will not only reshape Google's app store business but also bring about significant changes to their app store practices.

North Carolina Attorney General Josh Stein, who helped lead the case, said on Monday:

"Because of the settlement, Americans are going to see lower prices for apps and greater innovation."

Stein said the states felt they reached a “fair number” after negotiation with Google that would “provide meaningful restitution to consumers across this country.”

Eligibility and Compensation Details

As part of the settlement, Google will now provide users with the option to pay for in-app purchases through third-party payment channels, thus enhancing user choice and promoting competition. Additionally, the settlement requires Google to simplify the process of installing apps from unofficial sources, giving users greater flexibility in accessing a wider range of applications.

By addressing the allegations of harm to competition, the Google lawsuit settlement aims to establish a fairer and more transparent app store ecosystem. The impact of this settlement extends beyond monetary compensation, as it introduces systemic changes that will impact the app store industry as a whole.

Each eligible consumer will receive $2 or more, depending on their spending through the Google Play Store between August 16, 2016, and September 30, 2023.

If you are one of the eligible consumers and wish to claim compensation, you will need to follow the specified claims process outlined in the settlement.

Changes to Google's App Store Practices

Google's recent $630M lawsuit settlement has resulted in several changes to its app store practices. These changes aim to address allegations of unfair competition and promote a more transparent and user-friendly experience for app developers and consumers.

Colorado Attorney General Phil Weiser said in a statement ahead of the filing of the settlement terms, calling it a "victory for consumers."

“We brought this lawsuit because it is illegal to use monopoly power to drive up prices and limit consumer choice,"

Wilson White, Google’s vice president of government affairs and public policy, said in a blog post that Google was pleased to resolve the case. “Android and Google Play have continuously evolved,” he said.

According to the Washington Post,

"The Google settlement is a big-ticket payout, though it comes in under the $725 million that Facebook agreed to pay earlier this year for sharing users’ data without their permission."

One of the key changes is the expansion of a pilot program called "user choice billing." This program allows users to decide whether to pay for in-app purchases through Google's billing system or choose a third-party payment channel. By providing users with this choice, Google aims to create a more competitive environment and give app developers greater flexibility in monetizing their products.

Additionally, the settlement ensures that app makers can inform users about promotions and alternative billing systems, enabling them to explore different payment options and potentially save money. This change promotes fair competition among app developers within the Google Play Store.

The settlement requires Google to simplify the process of installing apps from unofficial sources. This change allows users to access a wider range of applications and encourages innovation outside of the traditional app store ecosystem.

Overall, these changes to Google's app store practices signify a significant step towards fostering fairness, competition, and choice in the app marketplace. They aim to address the concerns raised in the class-action lawsuit and promote a more user-centric approach to app distribution and monetization.

Google to Appeal "Epic Games" Settlement

Currently, Google is still facing two other anti-monopoly cases filed by the U.S. Justice Department:

1. Over the practices it uses to dominate the online search market,
2. Its control over the online ads sector.

Google reached the settlement with the states in September. However, Judge James Donato directed the parties to delay public filing of the settlement terms to avoid influencing a jury trial brought by the video game maker Epic Games -- against Google over similar issues.

Last week, a San Francisco jury decided in favor of Epic after only a few hours of deliberation. Google says it will appeal.

In a statement after the terms of Google’s settlement were revealed, Corie Wright, Epic’s vice president of public policy, criticized it as “a one-time payout with no true relief for consumers or developers”. Epic will continue to seek larger changes to Google’s app store in its own case, as it had originally seeked $10.5 billion in antitrust damages.

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