Attorney General Phil Weiser announces $700 million settlement with Google over Play Store monopoly

Dec. 19, 2023 (DENVER) – Attorney General Phil Weiser and a bipartisan group of 52 other attorneys general today announced a $700 million agreement with Google, resolving their lawsuit regarding the company’s monopoly tactics with the Google Play Store. These details come after a settlement in principle was announced in September.

“Google illegally restricted developers and consumers from freely doing business with each other, which harmed everyone who buys and sells apps and in-app products,” Weiser said. “After years of the company flouting a core principle of the free market—that consumers should be able to shop around to find the best price—this settlement will hold Google accountable under antitrust laws.”

Attorneys general sued Google in 2021, alleging the company unlawfully monopolized the Android app distribution and in-app payment processing market. Specifically, the states claimed that Google signed anticompetitive contracts to prevent other app stores from being preloaded on Android devices, bought off key app developers who might have launched rival app stores, created technological barriers to deter consumers from directly downloading apps to their devices, and imposed monopoly prices on in-app purchases.

Consumers who made purchases on the Google Play Store between August 2016 and September 2023 and were harmed by Google’s anticompetitive practices will be eligible for restitution. Eligible consumers do not have to submit a claim. If eligible, consumers will receive automatic payments through PayPal or Venmo or may elect to receive a check or ACH transfer. More details about that process are forthcoming.

The agreement also requires Google to reform its business practices by:

  • Giving all developers the ability to allow users to pay through in-app billing systems other than Google Play billing for at least five years.
  • Allowing developers to offer cheaper prices for their apps and in-app products for consumers who use alternative, non-Google billing systems for at least five years.
  • Permitting developers to steer consumers toward alternative, non-Google billing systems by advertising cheaper prices within their apps themselves for at least five years.
  • Not entering into contracts that require the Play Store to the be the exclusive, pre-loaded app store on a device or home screen for at least five years.
  • Allowing the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years.
  • Revising and reducing the warnings that appear on an Android device if a user attempts to download a third-party app from outside the Google Play Store for at least five years.
  • Maintaining Android system support for third-party app stores, including allowing automatic updates, for four years.
  • Not requiring developers to launch their app catalogs on the Play Store at the same time as they launch on other app stores for at least four years.
  • Submitting compliance reports to an independent monitor who will ensure that Google is not continuing its anticompetitive conduct for at least five years.

For much of this case, the attorneys general litigated alongside Epic Games, maker of the Fortnite video game, and Match, which operates dating apps like Tinder. Match announced a separate settlement earlier this year, while Epic Games took its case to trial. Early last week, a jury unanimously found that Google’s anticompetitive conduct violated federal antitrust laws.

Attorneys General from North Carolina, Utah, Tennessee, New York, and California led the lawsuit, and were joined by the attorneys general of all remaining states, the District of Columbia, and the territories of Puerto Rico and the Virgin Islands.

This case parallels separate pending antitrust litigation against Google brought by 38 states and the U.S Department of Justice which went to trial in September. That lawsuit, co-led by Weiser, is focused on how Google has abused its dominance in search and search advertising to harm competition and consumers.

###

Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office | (720) 245-4689 cell
lawrence.pacheco@coag.gov