Google Allows More App Payment Options in Antitrust Deal With States

Google said on Monday that it would allow developers on its Play app store to offer direct payment options to users and would pay $700 million to settle an antitrust suit brought by state attorneys general, in the company’s latest move to navigate increased regulatory scrutiny of its power.

The suit, brought in July 2021, accused Google’s app store of abusing its market power and forcing aggressive terms on software developers. The tech giant is facing several antitrust challenges in the United States, including a trial in which the federal government claims Google has abused its dominance in online search.

In its announcement on Monday, Google said it would now allow apps to charge consumers directly rather than having to charge through Google. The company will pay $630 million to create a settlement fund for consumers, as well as pay $70 million into a fund to be used by the states. To highlight the choice that users have in how they download apps, Google reaffirmed that phone makers, like Samsung, that use the Android mobile operating system can continue installing multiple app stores on their devices in addition to Google’s Play Store.

The settlement was announced in September, though details were not released.

Google hopes that the settlement will act as a template for resolutions with other critics of its Play Store policies, including Epic Games — the maker of the popular game Fortnite — which won an antitrust lawsuit against Google last week, according to a person familiar with the matter.

“This settlement builds on Android’s choice and flexibility, maintains strong security protections and retains Google’s ability to compete with other OS makers and invest in the Android ecosystem for users and developers,” Wilson White, Google vice president of government affairs, wrote in a blog post.

The settlement is Google’s latest concession regarding its app store, which has come under increased regulatory scrutiny in recent years over claims of monopolistic behaviors. The Google Play Store has drawn complaints because it is one of two main marketplaces for mobile apps along with Apple’s App Store. Google charges app makers a 15 percent fee for customer payments for app subscriptions and up to 30 percent for purchases made within popular apps that are downloaded from the store.