Google is set to repay tens of millions of customers in the US a combined £552 million ($700m) as part of a settlement over fees it charges for use of its app store.
It is estimated that a minimum 70 percent of eligible consumers — more than 71 million people — will automatically receive payments as a result of the settlement without having to file a claim, as per a court filing.
According to details of a settlement with attorney generals that was made public on December 18, the company will pay $630 million to a fund that will go directly to more than 100 million consumers nationwide, with an additional $70 million to be shelled out into a fund for states to benefit consumers for similar claims.
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The settlement that will see the tech giant fork the whopping figure resolves a lawsuit filed in 2021. The lawsuit was brought against Google over the alleged abuse of its market semi-monopoly by charging pricey fees for app creators.
As part of the settlement, Android users will be able to download apps directly to their mobile devices, thus bypassing the Play Store altogether. This was revealed by Wilson White, Google Vice President of Government Affairs and Public Policy, in a blog post published on the day the settlement was made public.
"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," White said.
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"We're pleased to resolve our case with the states and move forward on a settlement."
It is understood that the two parties came to an agreement in September, with Colorado Attorney General Phil Weiser hailing the deal as a step forward in protecting consumers, highlighting how even big companies have to 'play by the rules'.
"All companies – no matter how big or powerful – cannot refuse to play by the rules, including Google," Weiser said in a statement.
"We brought this lawsuit because it is illegal to use monopoly power to drive up prices and limit consumer choice."
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In order to be eligible for repayment, a person needs to have a legal address in their Google payments profile in one of the US states, the District of Columbia, Puerto Rico, or the US Virgin Islands when they purchased an app from Google Play or made an in-app purchase through Google Play in the period of time between August 2016 and September 2023.
As for how much eligible customers will receive, let's just say no one will be retiring early.
Lucky customers will receive at least $2, and potentially more depending on their Google Play spending.
Topics: Technology, Google
Stefania Sarrubba