Google will pay $700 million and make other concessions as part of a deal it reached with more than 50 attorneys general to resolve allegations of monopolistic tactics against it.
This Tuesday, North Carolina Attorney General Josh Stein announced that the technology company agreed to disburse a sum of $630 million as compensation to a large number of clients. In addition, it will allocate $70 million to states as part of the agreement between Google and 53 attorneys general.
The agreement does not focus solely on financial compensation, as Google will also have to make several reforms, including allowing developers to direct consumers to alternative billing systems, not issuing contracts that force the Google Play Store to be the exclusive preloaded app, and submitting compliance reports to an independent watchdog to ensure they are not repeated anticompetitive behavior all this for at least five years.
"No company is too big to play by the rules. As a result of this agreement, people who were harmed by these practices will be reimbursed, and Google will stop its anticompetitive practices. I will always fight to protect competition to keep prices lower and foster innovation," Stein said.
BREAKING: Attorney General @JoshStein_ led a bipartisan group of 52 other attorneys general who announced a $700 million agreement with Google over Google’s anticompetitive conduct with the Google Play Store. https://t.co/4gcQNdsE1b pic.twitter.com/STf1htkcFe
— NC Attorney General (@NCAGO) December 19, 2023
The lawsuit
The agreement arose after a lawsuit was initiated in 2021 that accused Google of monopolizing the distribution of Android applications and its payment processing method.
The lawsuit argued that the company prevented competing Android devices from having its apps preloaded. In addition, it argued that Google established technological barriers that discouraged consumers from downloading other applications on their Android devices.
Who will receive compensation?
Google must pay those who made purchases in the Google Play Store between August 2016 and September 2023.
Recipients will not need to file claims, as customers will receive automatic payments through PayPal or Venmo, with the option to choose a check or ACH transfer.
