Attorney General Ashley Moody, together with a coalition of 52 other attorneys general, has reached a settlement with Google, securing $700 million from the tech giant over allegations of anticompetitive conduct. The lawsuit alleged that Google unlawfully monopolized the market for the distribution of Android apps, as well as the in-app payment market, and tied Google Play Billing to the use of Google Play.
As part of the settlement, Google will pay $630 million in restitution to consumers who were harmed by the company's anticompetitive practices and made purchases on the Google Play Store between August 2016 and September 2023. Additionally, the company will pay the states an additional $70 million to resolve each state's sovereign claims.
Attorney General Moody expressed satisfaction with the outcome, stating, "We've obtained substantial monetary relief for Floridians as part of a $700 million recovery against Google over its anticompetitive business practices. This is a tremendous victory for Florida consumers as well as for our free, fair, and competitive marketplace."
Affected consumers will receive automatic payments through platforms like PayPal or Venmo, unless they choose to receive a check or ACH transfer. The agreement also requires Google to make its business practices more procompetitive in several ways.
The coalition alleged that Google engaged in anticompetitive contracts to prevent other app stores from being preloaded on Android devices, bought off key app developers to deter rival app stores, and created technological barriers to discourage consumers from directly downloading apps to their devices.
As part of the settlement, Google is now required to implement various reforms, including giving developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years. Developers are also permitted to offer cheaper prices for apps and in-app products for consumers who use alternative billing systems. Google must also allow developers to advertise cheaper prices within their apps to steer consumers toward non-Google billing systems.
In addition, Google is prohibited from entering contracts that require the Google Play Store to be the exclusive, pre-loaded app store on a device or home screen for at least five years. The company must also allow the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years.
Furthermore, Google is required to maintain support for third-party app stores on the Android system, including automatic updates, for four years. The company cannot require developers to launch app catalogs on the Google Play Store simultaneously with other app stores for at least four years. To ensure compliance, Google will submit regular compliance reports to an independent monitor for a period of five years.
This settlement comes after a long legal battle, with the attorneys general collaborating with major app developers Epic Games and Match. Match previously announced a separate settlement, while Epic Games took its case to trial. A jury unanimously found that Google's anticompetitive conduct violated federal antitrust laws.
The coalition, led by Attorney General Moody, includes attorneys general from all 50 states, as well as the attorneys general of the District of Columbia, Puerto Rico, and the Virgin Islands.
This settlement marks a significant step towards promoting a more competitive app marketplace and protecting consumers from anticompetitive practices. For more information, the agreement can be viewed by clicking here.
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