Google Settles Antitrust Case for $700M

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Facts

  • Google on Monday agreed to pay a $700M antitrust settlement and make other concessions to promote competition on its Google Play app store. The tech giant reached the agreement with US states and consumers, with terms disclosed in San Francisco federal court.1
  • The settlement resolves allegations Google stifled competition through its app store's terms and fees, and roughly 102M US consumers will be eligible to receive part of the $630M compensation. The other $70M will be paid to dozens of states that participated in the lawsuit, which originally sought $10.5B.2
  • Users who made purchases in the Google Play store between Aug. 16, 2016, and Sept. 30, 2023, are eligible to receive at least $2, and may receive more based on their spending. State attorneys general claim Google’s 15-30% commission on in-app purchases drove up prices, undermining the free market and generating billions in excess profit.3
  • The settlement was reached in September, but the terms were just disclosed — one week after a jury ruled that Google’s Play store was an illegal monopoly in a case brought by Epic Games. Google also agreed to permit Android devices to allow third-party apps and other billing systems next to Google Play.4
  • All 50 states, Washington, DC, Puerto Rico, and the Virgin Islands joined the settlement, but Google still faces antitrust suits for its search engine. In a statement, Google executive Wilson White said the settlement “builds on Android’s choice and flexibility” while promoting competition.5
  • Roughly 70M eligible users will automatically receive payments. On Monday, Epic Games criticized the settlement for failing to address Google’s alleged illegal conduct.6

Sources: 1NPR Online News, 2CNN, 3Associated Press, 4Verge, 5CNBC and 6ABC News.

Narratives

  • Pro-establishment narrative, as provided by New York Times. The government is holding Google accountable. Not only does it have to pay a hefty fine, but it also must amend its policies and promote competition in its app stores. Regulators have been piling up victories against Google, and there’s more litigation against the company to come. States and regulators will be holding Google’s feet to the fire for a while.
  • Establishment-critical narrative, as provided by WRAL TechWire. This may seem like a large settlement, but it’s just a slap on the wrist for a big tech monopoly. Google is getting off lightly financially and it can continue its anti-competitive practices. While states may spin this as a win for consumers, it’s just another example of big businesses getting let off the hook.