Google to Pay Consumers $700M from App Store Settlement

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Google will pay millions of U.S. consumers a combined $700 million from a settlement with state attorneys general over fees the tech giant charges for use of its app store.

The company will pay $630 million to a fund that will go directly to approximately 100 million consumers nationwide, according to details of a settlement that was made public last week. There will be an additional $70 million to be paid into a fund for states to properly disburse to consumers for similar claims.

If you recall, the settlement resolves a 2021 lawsuit brought against Google for its market dominance by charging exorbitant fees for app creators. Some consumers felt Google conducted poor business practices and took advantage of them.

As part of the settlement agreement, Google will allow users of its Android mobile devices to directly download apps, bypassing the Play Store altogether. According to Google Vice President of Government Affairs and Public Policy Wilson White, who said in a blog post on Monday. “This settlement builds on Android's choice and flexibility, maintains strong security protections, and retains Google's ability to compete with other OS makers, and invest in the Android ecosystem for users and developers," White went on to say, “We're pleased to resolve our case with the states and move forward on a settlement."

Colorado Attorney General Phil Weiser said, “All companies no matter how big or powerful cannot refuse to play by the rules, including Google. We brought this lawsuit because it is illegal to use monopoly power to drive up prices and limit consumer choice," Weiser said in a statement.

How do I file a claim from this settlement:

Around 70% of eligible consumers, which is equivalent to more than 71 million people, will automatically receive payments stemming from the settlement without having to file a claim, per the court filing from the states.

Details within the settlement define an eligible consumer as a person with a legal address in their Google payments profile in one of the U.S. states, the District of Columbia, Puerto Rico, or the U.S. Virgin Islands when they purchased an app from Google Play or made an in-app purchase through Google Play. The dates consumers want to focus on are between August 2016 and September 2023.