Android phone owners could be entitled to a payment from Google’s $90 million lawsuit payout. In recent years, the tech company has been forced to shell out millions of dollars in lawsuits pertaining to privacy on its Chrome browser and antitrust in relation to its Android app store.
Lawsuits have been launched by the US Department of Justice, as well as several other US states, all of which accused Google of abuses of power over the access customers have to apps on devices that use its Android operating system. According to Forbes, the abuse of power related to the 15 to 30 per cent cut Google took in transactions made via its payment system in the Play Store.
Epic Games and Other Developers Take a Stand
In 2021, Epic Games and other developers sued Google for forcing them to use its payment system to enable customers to download their apps. The case was settled in 2023, but, when a jury found Google had violated US antitrust laws, the company shared more about what it had agreed to change.
Google claimed it was going to lower its cut in the Play Store billing transactions to 11 to 26 per cent, and give consumers the option to pay for the software directly from developers. The company revealed it was paying out $90 million, which is “to be distributed for the benefit of consumers according to a Court-approved plan”. It would also pay an extra $10 million for use by the states.
What This Means for Android Users
Android phone users who made a transaction in the Play Store between 16 August 2016 and 30 September 2023 are entitled to a minimum of a $10 payout as part of the court settlement. Luckily, eligible customers don’t need to do anything in order to claim as they will be automatically notified about their options.
This settlement marks a significant shift in how tech giants like Google manage their app stores and interact with developers. The reduction in transaction cuts and the option for direct payments from developers could pave the way for a more competitive and fair marketplace.
As Google navigates these legal challenges, it remains to be seen how these changes will impact its business model and relationships with both developers and consumers. For now, Android users can look forward to their share of the settlement and potentially more freedom in how they purchase apps and services in the future.