Google Fined $700m Over Android App Store Monopoly

Google has been fined $700 million by the U.S. District Court in California for allegedly monopolising Android app distribution and in-app payment processing through the Google Play Store.

The penalty followed a multistate lawsuit brought by 53 U.S. state attorneys general and came after roughly five years of litigation.

The plaintiffs accused Google of limiting rival app stores, discouraging developers from using alternative platforms and making it difficult for users to download applications outside the Google Play Store.

Washington Attorney General Nick Brown said in a statement that approximately $13 million of the settlement would be returned to consumers in the state, with an estimated 2.4 million people eligible for refunds.

“Most of the settlement funds will go directly to people who made purchases on Google Play between August 2016 and September 2023. Most recipients won’t need to fill out a claim form and will receive their payments through PayPal or Venmo,” he said.

Brown said his office had carried out what he described as one of its primary responsibilities of protecting residents from monopolistic practices.

“When giant companies gain an illegal stranglehold on a market, we take action and deliver relief for consumers,” Mr Brown said.

“Fighting monopolies is one of our office’s core responsibilities, and I’m proud that millions of Washingtonians will now get refunds because of our litigation,” he added.

Arizona Attorney General Kris Mayes also criticised Google, accusing the company of exploiting its dominant position in the app market to increase prices.

“With this settlement, we’re saying loud and clear that anticompetitive conduct like this will not be tolerated,” Ms Mayes said.

“A competitive, fair marketplace promotes lower prices, higher quality goods and services and more options for consumers. My office will continue to go after illegal and unfair business practices to protect Arizonans,” she added.