Google has shared the details of a huge payout its having to make in the wake of losing a huge lawsuit last week.

The tech giant was hit with a lawsuit back in 2020 after dozens of US states came together and accused Google of abusing its power regarding consumer access to apps on mobile devices running its Android operating system.

This largely came down to its payment system as Google is said to have made game developers use its proprietary payment system for apps downloaded from the Play Store – where Google charges a 15 to 30 percent cut on all transactions, according to Forbes.

Elsewhere, a separate lawsuit launched by Epic Games and other developers in 2021 came to a close last week after a jury found that Google had violated US antitrust laws.

While the 2020 lawsuit brought forward by all 50 state attorneys general was settled back in September, details of such settlement were not revealed at the time.

But, in the wake of last week’s ruling, Google have shared more about the settlement, as well announcing other changes it’s going to make.

Google has to pay out a hefty sum. Credits: Tayfun Coskun/Anadolu Agency via Getty Images
Google has to pay out a hefty sum. Credits: Tayfun Coskun/Anadolu Agency via Getty Images

The original 15 to 30 percent cut the firm received is now being lowered to 11 to 26 percent, and Google will now apparently show different pricing options on in the Play Store so that consumers can opt to pay for the product direct from the developer, rather than through Google Play’s billing system.

Developers are also now able to show different prices for its products within the app without seeking permission from Google.

In addition to this, Google are paying out a whopping $630 million ‘to be distributed for the benefit of consumers according to a Court-approved plan’, as well as an additional $70 million to a fund for use by the states.

In regards to how much you might be able to get your hands on, eligible consumers who made a purchase on the Play Store between August 16, 2016 and September 30, 2023 will receive a minimum of $2, according to the court settlement.

Part of Google’s statement issued yesterday (December 18) read: “Android and Google Play have continuously evolved to provide more flexibility and choice in response to feedback from developers and regulators, as well as intense competition from Apple and app stores across the open Android ecosystem.

Epic Games proved victorious against Google in last week's ruling. Credits: Costfoto/NurPhoto via Getty Images
Epic Games proved victorious against Google in last week’s ruling. Credits: Costfoto/NurPhoto via Getty Images

“We demonstrated this in the recent trial and were disappointed that the verdict did not recognize the choice and competition that our platforms enable. While we are challenging that verdict and our case with Epic is far from over, we remain committed to continually improving Android and Google Play.

“Today, the details of a settlement reached in September with state attorneys general were filed publicly. This settlement builds on Android’s choice and flexibility, maintains strong security protections, and retains Google’s ability to compete with other OS makers, and invest in the Android ecosystem for users and developers.”

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By admin