Google has reached tentative settlement in the US Play Store lawsuit

Alphabet's Google tentatively settled a class-action lawsuit on Tuesday.

Publication: 06.09.2023 - 10:49
Google has reached tentative settlement in the US Play Store lawsuit
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Class-action lawsuit, which alleged that its U.S. Play Store had violated U.S. federal antitrust rules by overcharging customers, as indicated in a court filing.

The details of the settlement were not disclosed.

In the lawsuit brought forth by over 30 U.S. states and representing 21 million consumers, the plaintiffs asserted that consumers might have spent less on apps and had more choices if it weren't for Google's alleged monopoly.

The parties involved in the settlement, including attorneys representing the attorney general for Utah, who is leading the coalition of states, have requested the cancellation of a trial scheduled for November 6.

Google, which had denied any wrongdoing, chose not to comment on the proposed settlement. Lawyers for the consumer plaintiffs also declined to comment on the proposed settlement. Meanwhile, a lawyer representing the states and the District of Columbia did not immediately respond to a request for comment.

The approval of the court is required for this settlement.

Google is facing similar lawsuits that allege it has generated substantial profit margins from its Play Store by employing unlawful tactics to maintain monopolies in the sale of Android apps and in-app purchases.

They contend that Google has unreasonably mandated that certain apps utilize the company's payment tools and relinquish up to 30% of digital goods sales to Google.

Epic Games, the initiator of one such claim, is not a party to the proposed Google Play settlement, as confirmed by founder and CEO Tim Sweeney in a post on the social media platform X, previously known as Twitter.

"If Google is discontinuing its payment monopoly without imposing a Google Tax on third-party transactions, we'll settle and become Google's ally in their new era," he stated, adding that if the settlement retains the 'Google tax,' the company will "continue to fight."

Match Group (MTCH.O) has also filed a claim. A spokesperson for Match declined to comment.

The case is titled "In re Google Play Store Antitrust Litigation," and it is being heard in the U.S. District Court, Northern District of California, under case number 21-md-02981.


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