In a landmark settlement, Google is shelling out $700 million after California Attorney General Rob Bonta led a charge against the tech giant's monopolistic grasp over Android's app market. Bonta, backed by a formidable coalition spanning 50 states and several territories, accused Google of playing dirty to keep its dominant spot on Android devices, according to a press release on the Attorney General's official website.
The deal, still pending court nod, means hefty cashback for consumers—tuning out to a cool $630 million, minus the obligatory cuts for costs and fees, for those who've splurged on Google Play Store apps and felt the sting of the company's stifling practices, from August 2016 through this past September. The states will also pocket an additional $70 million for penalties and other expenses. In a move that spells out simplicity, the payout to eligible consumers will happen without them having to lift a finger, thanks to automatic transfers via digital wallets like PayPal and Venmo or the traditional route of checks or ACH transfers, as per an announcement.
"Google took advantage of Android phone customers by limiting consumer choice and capitalizing on commissions for in-app purchases, all while limiting alternative ways to download apps," Bonta said, tearing into the tech behemoth's strategy that, he claims, not only gouged consumers but also created a one-sided marketplace that padded Google's pockets with "ill-gotten profits."
The settlement terms are a punch list aimed to topple Google's iron grip on the app market, with mandates like letting developers use other in-app billing systems, giving a nod to cheaper app and in-app prices on non-Google billing systems—which users can peek at inside the apps—without Google's usual meddling for at least five years. Furthermore, the agreement forges a path for third-party app stores on Android, slashing through the scare tactics that discouraged users from stepping off the beaten Play Store path and keeping the tech company under an independent watchdog's scrutiny to ensure they don't relapse into their old ways for quite a while.
