Google to pay $700,000,000 compensation to millions of customers
Google has agreed to pay 700 million US dollars (£553 million) and make several other concessions to settle allegations that it had been stifling competition against its Android app store.
The tech giant agreed a settlement with US states on Monday after it was accused of overcharging customers when they purchase items in apps.
Google reportedly collects commissions ranging from between 15%-30% on its in-app purchases. These fees were contended as driving prices higher than they would have been if there was an open market for payment processing.
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Now the company has agreed to make it easier for consumers to download and install Android apps from other outlets besides its Play Store for the next five years.
It has also conceded to offer alternative payment systems for in-app purchases alongside its own.
Consumers who could be eligible for a piece of the $630 million dollar (£497.4 million) compensation fund are to be automatically notified about options for how they can receive their cut of the money, AP reported.
Wilson White, Google’s vice president of government affairs and public policy, said in a blog post: "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.
"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".
The settlement comes ahead of Google's legal clash with American video game and software developer Epic Games, who are behind the popular game Fortnite.
Last week a jury in California sided with Epic that parts of Google's apps business were anti-competitive.
The video game maker, who makes a considerable chunk of change from selling items in Fortnite, has been opposed to Google's tactics for some time.
Fortnite has been barred from Apple's App Store and the Google Play Store for many years after Epic attempted to find a workaround.
State attorneys made the case that Google's commissions, which generate billions of dollars every year, have driven prices beyond what they would have been had there been fair competition.
But now, Android developers will be given more say.
In particular, they will be able to offer different payment options to customers.
This way, buying in-app items will not necessarily be processed through Google's own payment system, through which it levies its commissions.
Google has also agreed to pay compensation to millions of US customers after overcharging for items purchased in apps.
In total, around 102 million people across the US will receive a payment of at least $2 (£1.60).
Additional payments will also be issued depending on how much they have spent on Play Store between 16 August 2016 and 30 September 2023.
Fortnite, which is free, generates enormous amounts of cash through items players are able to purchase to customise their virtual characters.
Since 2017, the game has become a cultural phenomenon, hosting virtual concerts featuring stars like Ariana Grande and special events.
Epic plans on asking the judge to issue an order which will require Google to make changes to the Play Store.
Google has denied any wrongdoing.