The settlement “builds on Android’s choice and flexibility, maintains strong security protections, and retains Google’s ability to compete with other (software) makers, and invest in the Android ecosystem for users and developers,” White wrote in a blog post.Īlthough the state attorneys general hailed the settlement as a huge win for consumers, it didn’t go far enough for Epic Games, which spearheaded the attack on Google’s app store practices with an antitrust lawsuit filed in August 2020.Įpic, the maker of the popular Fortnite video game, rebuffed the settlement in September and instead chose to take its case to trial, even though it had already lost on most of its key claims in a similar trial targeting Apple and its iPhone app store in 2021. Wilson White, Google’s vice president of government affairs and public policy, framed the deal as a positive for the company, despite the money and concessions it entails. The settlement represents a “loud and clear message to Big Tech - attorneys general across the country are unified, and we are prepared to use the full weight of our collective authority to ensure free and fair access to the digital marketplace,” said Connecticut Attorney General William Tong. Investors seemed unfazed by the settlement as shares in Google’s corporate parent, Alphabet Inc., rose slightly in Tuesday’s midday trading. Apps will also be able to promote lower prices available to consumers who choose an alternate to the Play Store’s payment processing. The makers of Android apps will also gain more flexibility to offer alternative payment choices to consumers instead of having transactions automatically processed through the Play Store and its commission system. It will refrain from issuing as many security warnings, or “scare screens,” when alternative choices are being used. Google also agreed to make other changes designed to make it even easier for consumers to download and install Android apps from other outlets besides its Play Store for the next five years. consumers who made in-app purchases during that time frame are supposed to be automatically notified about various options for how they can receive their cut of the money.Īnother $70 million of the pre-trial settlement will cover the penalties and other costs that Google is being forced to pay to the states.Īlthough Google is forking over a sizeable sum, it’s a fraction of the $10.5 billion in damages that the attorneys general estimated the company could be forced to pay if they had taken the case to trial instead of settling. Those commissions generated billions of dollars in profit annually for Google, according to evidence presented in the recent trial focused on its Play Store.Įligible consumers will receive at least $2, according to the settlement, and may get additional payments based on their spending on the Play store between Aug. Like Apple does in its iPhone app store, Google collects commissions ranging from 15% to 30% on in-app purchases - fees that state attorneys general contended drove prices higher than they would have been had there been an open market for payment processing. That store caters to the Android software that powers most of the world’s smartphones. consumers funneled into a payment processing system that state attorneys general alleged drove up the prices for digital transactions within apps downloaded from the Play Store. The settlement with the states includes $630 million to compensate U.S. Epic Games Wins Antitrust Lawsuit Against Google Over Android App Store
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