Google to pay $700 million to US states, consumers in app store settlement

Featured Legal News

Google has agreed to pay $700 million and make several other concessions to settle allegations that it had been stifling competition against its Android app store — the same issue that went to trial in another case that could result in even bigger changes.

Although Google struck the deal with state attorneys general in September, the settlement’s terms weren’t revealed until late Monday in documents filed in San Francisco federal court. The disclosure came a week after a federal court jury rebuked Google for deploying anticompetitive tactics in its Play Store for Android apps.

The settlement with the states includes $630 million to compensate U.S. consumers funneled into a payment processing system that state attorneys general alleged drove up the prices for digital transactions within apps downloaded from the Play Store. That store caters to the Android software that powers most of the world’s smartphones.

Like Apple does in its iPhone app store, Google collects commissions ranging from 15% to 30% on in-app purchases — fees that state attorneys general contended drove prices higher than they would have been had there been an open market for payment processing. Those commissions generated billions of dollars in profit annually for Google, according to evidence presented in the recent trial focused on its Play Store.

Eligible consumers will receive at least $2, according to the settlement, and may get additional payments based on their spending on the Play store between Aug. 16, 2016 and Sept. 30, 2023. The estimated 102 million U.S. consumers who made in-app purchases during that time frame are supposed to be automatically notified about various options for how they can receive their cut of the money.

Another $70 million of the pre-trial settlement will cover the penalties and other costs that Google is being forced to pay to the states.

Although Google is forking over a sizeable sum, it’s a fraction of the $10.5 billion in damages that the attorneys general estimated the company could be forced to pay if they had taken the case to trial instead of settling.

Google also agreed to make other changes designed to make it even easier for consumers to download and install Android apps from other outlets besides its Play Store for the next five years. It will refrain from issuing as many security warnings, or “scare screens,” when alternative choices are being used.

The makers of Android apps will also gain more flexibility to offer alternative payment choices to consumers instead of having transactions automatically processed through the Play Store and its commission system. Apps will also be able to promote lower prices available to consumers who choose an alternate to the Play Store’s payment processing.

Related listings

  • Texas Supreme Court blocks Kate Cox's emergency abortion approval

    Texas Supreme Court blocks Kate Cox's emergency abortion approval

    Featured Legal News 12/10/2023

    The Texas Supreme Court on Friday night put on hold a judge’s ruling that approved an abortion for a pregnant woman whose fetus has a fatal diagnosis, throwing into limbo an unprecedented challenge to one of the most restrictive bans in the U.S...

  • Peru court orders imprisoned ex-President Fujimori's 'immediate' release

    Peru court orders imprisoned ex-President Fujimori's 'immediate' release

    Featured Legal News 12/06/2023

    Peru’s constitutional court ordered an immediate humanitarian release Tuesday for imprisoned former President Alberto Fujimori, 85, who was serving a 25-year sentence in connection with the death squad slayings of 25 Peruvians in the 1990s.The ...

  • A conservative attack on government regulation reaches the Supreme Court

    A conservative attack on government regulation reaches the Supreme Court

    Featured Legal News 11/29/2023

    The Supreme Court is hearing arguments in a challenge to the Securities and Exchange Commission’s ability to fight fraud, part of a broad attack on regulatory agencies led by conservative and business interests.The case before the justices Wedn...

Thai National Sentenced, Faces Deportation for Operating Immigration Fraud Scheme

Nimon Naphaeng, 36, a native and citizen of Thailand, who resided in Wakefield, R.I., was sentenced Monday to 27 months in federal prison for running an immigration fraud scheme that defrauded more than 320 individuals, most of them immigrants, of at least $400,000, and perhaps more than $518,000. The scheme included the unauthorized filing of false asylum applications on behalf of individuals who did not request, nor authorize, the applications.

“U.S. Citizenship and Immigration Services does not tolerate immigration fraud of any kind,” said Susan Raufer, director of the USCIS Newark Asylum Office. “We are proud of our role in uncovering this fraud scheme and bringing the perpetrator to justice.”

At sentencing, U.S. District Court Chief Judge William E. Smith ordered a provisional amount of restitution of $400,000. The final amount of restitution will be determined subject to additional victims being identified and additional court filings over the next 90 days. According to court documents already filed by the government, restitution in this matter may exceed $518,300. During the investigation, the government seized $285,789.31 from Naphaeng. The forfeited funds will be applied toward restitution for victims of Naphaeng’s crimes.