Texas Attorney General Ken Paxton has announced a landmark $700 million settlement with technology giant Google over allegations of anticompetitive conduct related to the Google Play Store. The agreement, which was reached with the participation of attorneys general from all states and several territories, marks a significant victory in the ongoing battle to hold big tech companies accountable for their monopolistic practices.
Under the terms of the settlement, Google will pay $630 million in restitution to consumers who made purchases on the Google Play Store between August 2016 and September 2023 and were harmed by the company's anticompetitive behavior. The restitution amount will be reduced by costs and fees. In addition, Google will pay $70 million in penalties to the participating states.
The agreement also includes provisions aimed at curbing Google's unfair marketplace power. Google will be required to adopt better business practices that promote competition and reduce its ability to stifle innovation and harm consumers. This is a significant step towards creating a more level playing field for other companies and ensuring that consumers have access to a vibrant and competitive marketplace.
The lawsuit filed by the coalition of attorneys general accused Google of unlawfully monopolizing the market of Android app distribution and in-app payment processing. The allegations centered around Google's anticompetitive contracts that prevented other app stores from being preloaded on Android devices, as well as the company's practice of paying key app developers not to launch their products on rival app stores. Furthermore, Google was found to have created technological barriers to discourage consumers from directly downloading apps to their devices.
Attorney General Paxton, who has been at the forefront of the fight against tech giants, expressed his satisfaction with the settlement. He stated, "Texas has led the nation in the fight to hold giant tech companies accountable for monopolistic activity. I am proud that this settlement brought together so many states who recognized the importance of protecting free markets."
The settlement with Google is a significant step towards promoting fair competition in the tech industry and safeguarding the interests of consumers. It sends a clear message that anticompetitive practices will not be tolerated and that even the most powerful companies will be held accountable for their actions.
To read the full settlement, click here.
To find out more, go to this link: https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-announces-700-million-settlement-google-anticompetitive-practices