Millions of Americans are about to receive cash from Google
Alphabet Inc-owned Google, in a recent antitrust lawsuit, agreed to pay compensation to millions of American users and to allow space for greater competition in its Google Play app store.
According to the terms of an antitrust settlement with US states and consumers, Google will be paying a sum of $630 million to millions of people spread across US states, while $70 million will be transferred to a fund.
Over 100 million consumers across America are eligible to receive compensation from Google. These users are spread across all 50 states of the US, as well as DC, Puerto Rico and the US Virgin Islands, reported the Washington Post.
The settlement in the antitrust suit was reached in September but is only being reported now. However, the settlement still requires a final approval from a judge.
According to the terms of the lawsuit, over 70 million of the total consumers won’t even have to fill out any paperwork to receive their compensation share from Google, which will be paid automatically to them.
Consumers who are eligible for this compensation are those who made in-app purchases and bought an app on Google Play between August 16, 2016, and September 30, 2023.
Lead plaintiff Utah and other states announced the settlement in September, but the terms were kept confidential ahead of Google’s related trial with “Fortnite” maker Epic Games. A California federal jury last week agreed with Epic that parts of Google’s app business were anticompetitive.
Why is Google paying compensation to consumers?
Google has been accused of overcharging consumers through in-app purchases and several restrictions placed on the Android app store. While Google was accused of unnecessarily driving up feelings, it admitted to no wrongdoings.
Google had said that it has piloted “choice billing” in the US for consumers, providing consumers an option to make in-app purchases in games and other platforms alternative to Play Store’s billing system.
Further, Google was also accused of using anti competitive tactics to prevent competition and ensure that developers are forced to use Google Play to reach consumers, reducing reliance on other platforms. However, Google has admitted to no wrongdoings in this case.
(With inputs from Reuters)
