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Friday, September 27, 2024

Attorney General Kaul Announces $700 Million Settlement with Google over Play Store Misconduct

State AG
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Attorney General Josh Kaul | Attorney General Josh Kaul Office

Attorney General Josh Kaul, along with a bipartisan group of 52 other attorneys general, has reached a $700 million settlement with Google in a lawsuit that addressed Google's anticompetitive conduct with the Google Play Store. The settlement aims to address concerns about Google's monopolistic practices and protect consumers from paying extra due to anticompetitive behavior.

In the settlement, Google has agreed to pay $630 million in restitution to consumers who made purchases on the Google Play Store between August 2016 and September 2023 and were affected by Google's anticompetitive practices. Attorney General Josh Kaul emphasizes the importance of protecting consumers and ensuring competitive markets, stating, "Consumers shouldn't have to pay extra because of anticompetitive practices. The Wisconsin Department of Justice will continue working to protect people's pocketbooks and to ensure that markets are competitive."

The restitution process will be seamless for eligible consumers, as they do not need to submit a claim. They will receive automatic payments through platforms like PayPal or Venmo, or they can choose to receive a check or ACH transfer.

The settlement also includes provisions for Google to improve its business practices to promote competition. Google is required to give developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years. Developers can also offer cheaper prices for their apps and in-app products for consumers who use alternative billing systems. Additionally, developers are permitted to steer consumers toward alternative billing systems by advertising cheaper prices within their apps.

Google is also prohibited from entering contracts that make the Play Store the exclusive, pre-loaded app store on a device or home screen for at least five years. The company must allow the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years. Furthermore, Google will revise and reduce the warnings that appear on an Android device if a user attempts to download a third-party app from outside the Google Play Store.

To ensure compliance, Google is required to submit compliance reports to an independent monitor who will oversee the company's adherence to the settlement terms for at least five years.

This settlement comes after the attorneys general alleged that Google unlawfully monopolized the market for Android app distribution and in-app payment processing. The states announced a settlement in principle on September 5, 2023, and have now released the finalized terms of the agreement.

Attorney General Kaul and his team, including Assistant Attorney General Gwendolyn Lindsay Cooley, have played a pivotal role in representing the State of Wisconsin in this matter. The settlement marks a significant step in addressing anticompetitive behavior and ensuring a more competitive market for app distribution and payment processing.

For additional details, please follow this link: https://www.doj.state.wi.us/news-releases/attorney-general-kaul-announces-700-million-settlement-google-over-play-store

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