Washington State Attorney General Bob Ferguson announced today that Google Play Store users in Washington are eligible to receive a share of a $700 million nationwide resolution resulting from a multistate antitrust lawsuit against global technology giant Google.
The lawsuit, filed in July of 2021, accused Google of employing anticompetitive practices to shield its app distribution service, Google Play Store, from competition. The company’s alleged tactics included forcing Android app developers to increase app prices to cover Google’s exorbitant fees, impacting users at all levels of the smartphone ecosystem.
Ferguson emphasized the significance of the resolution, stating, “When companies illegally act like monopolies, everyone loses out on the benefits of healthy competition. This resolution stops Google from rigging the system and creates a more level playing field.”
As part of the resolution, each eligible Washington consumer will receive a minimum of $2, with additional payments based on their Play Store spending between August 2016 and September 2023. Approximately 2.9 million Washingtonians with Android phones are estimated to be eligible, resulting in an overall reimbursement of $10.6 million for overpayments.
The lawsuit asserts that Google’s anticompetitive tactics, including blocking non-Google Play Store apps from advertising on its search platforms, imposing restrictions on direct app downloads, and preloading the Play Store on devices, making it impossible to delete. Over 90 percent of all Android apps are downloaded from the Google Play Store, solidifying the company’s dominance in the market.
In addition to the $700 million payment, Google is mandated to implement corporate reforms, such as prohibiting contracts maintaining Play Store exclusivity, allowing third-party app installations on Android phones outside the Play Store, and supporting operating system improvements for those apps.
As part of the resolution, Google will allocate $630 million for consumer reimbursements, with an estimated $10.6 million distributed to eligible Washingtonians. Payments will be automatically made to PayPal or Venmo accounts associated with Play Store accounts, eliminating the need for users to submit claims.
The remaining $70 million from the nationwide resolution will be allocated for civil penalties and to cover costs and fees associated with the case for the original bipartisan group of 38 states, including Washington, and Washington D.C.
Furthermore, Google is required to make substantial changes, including giving developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years, allowing developers to offer cheaper prices for their apps through non-Google billing systems, and not entering contracts that require Play Store exclusivity on devices for at least five years.