Android App Market Shakeup: Google Settles Antitrust Case with $700 Million and Play Store Changes
Google's parent company, Alphabet, has settled a major antitrust lawsuit. Facing pressure from all 50 US states and consumers, they agreed to a $700 million settlement and changed Google Play Store policies to open up the Android app market. Accusations? Google allegedly used unfair tactics to force developers to use the Play Store, raising app prices in the process. They pocketed as much as 30% of every Play Store transaction, a huge chunk whose bite was felt by consumers and developers alike.
Google to pay $700 million to settle antitrust lawsuit
Now, to resolve the legal mess, Google has agreed to pay a hefty sum and loosen its grip on the Play Store ecosystem: $630 Million Consumer Fund: This pot of money will go to consumers who have overpaid for in-app purchases through Google Play. Disbursement of the fund will be approved by the court, although the details of the disbursement have not been disclosed.
$70 million state fund: Google will pay an additional $70 million to state AGs as they see fit.
To improve, Google is also opening up the app ecosystem. Developers will now have the option of using a separate billing system, which will save them 4% on those hefty fees. Google has been testing this system for over a year, and now it should finally be official. Also, developers can now offer different pricing options in apps, giving consumers more flexibility.Additionally, Play Store's grip on app downloads is also loosening. Google is making it easier for users to download apps directly from developers' websites, bypassing the Play Store entirely.
They are also toning down warnings that appear when sideloading apps. When sideloading an app the message will now read “Your phone is not currently configured to install apps from this source. Allowing this source to install apps may put your phone and data at risk.”
Likewise, for phone makers, the Play Store is no longer the only game in town. They can pre-install other app stores without Google's permission, even skipping the Play Store altogether. And in the upcoming Android 14, these alternative stores can also handle app updates, which are out of Google's grasp.