Google Settles Play Store Dispute with $700M Payment: Changes in App Distribution and Billing Expected

Google has announced a settlement in a class action lawsuit regarding its dominant position in the Android app distribution market through the Play Store. As part of the agreement, Google will pay a total of $700 million, with $630 million allocated to U.S. consumers and $70 million to a fund utilized by U.S. states. This settlement, initially reached in September, aims to address concerns raised about Google’s monopoly over app distribution on Android.

As a result of the settlement, Google plans to expand its user choice billing program, which was piloted in the U.S. in November 2022. This program allows developers to use alternative payment methods for in-app purchases and enables them to display different costs based on the chosen billing method. Moreover, Google will streamline the sideloading process, making it easier for users to install apps from sources outside the Play Store. The company will combine the existing warning pop-up and settings screen, maintaining this simplified sideloading process for at least five years.

While emphasizing the importance of informing users about the potential risks of sideloading, Google recognizes the need to simplify the process and update the language used in the warning messages. The settlement also highlights Android 14’s enhancements, which offer more controls for third-party app stores through an API.

Despite this settlement, Google plans to appeal the verdict of its antitrust battle with Epic Games, stating that the case is “far from over.” The trial brought to light Google’s commission deals with companies like Spotify, raising questions about fair competition.

In response to the settlement, Epic Games voiced dissatisfaction, claiming it brings no true relief to consumers. Epic Games intends to pursue meaningful remedies in the ongoing case, aiming to foster a more open Android ecosystem.

With this settlement, Google aims to address concerns regarding app distribution and billing practices on the Play Store. The company seeks to strike a balance between safety measures and enabling competition, promising updates that enhance user choice and developer freedom in the Android ecosystem.