Google to pay $700 million and make tiny app store changes to settle with 50 states


The biggest change: Google will need to let developers steer consumers away from the Google Play Store for several years, if this settlement is approved.
You can read the full 68-page settlement for yourself at the bottom of this story, but here’s the TL;DR about what it includes:
Does that sound like a lot? If you add it all up, it does make for a slightly different Google app store landscape than we’ve experienced over the past decade and change. But not only does every one of these concessions have an expiration date, many of them are arguably not real concessions.
Google argued during the Epic v. Google trial that users were already perfectly able to install third-party apps on their devices through any number of means, and it claimed many of its agreements with developers, OEMs, and carriers did not require them to, for instance, exclusively put Google Play on a phone or its homescreen.
We confirmed with Google spokesperson Dan Jackson this evening that User Choice Billing participants are given a discounted rate of just 4 percent off of Google’s fee when users choose their own payment system, and that it won’t change as a result of the settlement. Not only did Google internally find that developers would lose money when users choose the 4 percent rate, but Google also gives companies like Spotify a free ride while apparently charging everyone else.
Perhaps most importantly, Google is reserving the right not to let developers like Netflix link to their own websites to give their users a discounted rate. “Google is not required to allow developers to include links that take a User outside an app distributed through Google Play to make a purchase,” the settlement agreement reads. We are still waiting to find out whether Apple will allow links and/or buttons to alternative payment systems, based on the ruling in Epic v. Apple. But the Google / state AGs settlement suggests that regardless, Google will not be required to allow links.
In a tweet, Epic Games CEO Tim Sweeney calls the settlement “an injustice to all Android users and developers,” adding that it “endorses Google’s 30% monopoly rent imposition, by replacing the anticompetitive Google Play Billing tie with a new anticompetitive Google-imposed ‘user choice billing’ tie which adds a useless 26% Google Tax for payments they don’t process.” Epic has an official blog post that basically says the same.
According to court filings, the states will ask Judge James Donato to approve the settlement on February 8th. That’s the same judge overseeing Epic v. Google, and both of those parties will be discussing what Epic may have actually won in that case during the second week of January.
In 2022, Google settled a smaller lawsuit with app developers for $90 million.
The biggest change: Google will need to let developers steer consumers away from the Google Play Store for several years, if this settlement is approved. You can read the full 68-page settlement for yourself at the bottom of this story, but here’s the TL;DR about what it includes: Does that…
Recent Posts
- H&R Block Coupons and Deals: $50 Off Tax Prep in 2025
- Elon Musk says Grok 2 is going open source as he rolls out Grok 3 for Premium+ X subscribers only
- FTC Chair praises Justice Thomas as ‘the most important judge of the last 100 years’ for Black History Month
- HP acquires Humane AI assets and the AI pin will suffer a humane death
- HP acquires Humane AI assets and the AI pin may suffer a humane death
Archives
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- September 2018
- October 2017
- December 2011
- August 2010