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Google Grapples with $700M Smackdown, Consumers Cash in as States Take Silicon Valley Giant to Task

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Published on December 19, 2023
Google Grapples with $700M Smackdown, Consumers Cash in as States Take Silicon Valley Giant to TaskSource: The Pancake of Heaven!, CC BY-SA 4.0, via Wikimedia Commons

Big bucks are coming back to consumers thanks to a landmark $700 million settlement with Google over the tech giant's Google Play Store shenanigans, Illinois Attorney General Kwame Raoul announced Tuesday, part of a massive multistate takedown of the Silicon Valley staple's supposed anti-competitive ways.

According to the deal, Google's coughing up a whopping $630 million in restitution that's slated to go directly into the pockets of consumers who felt the pinch from Google's market muscle from August 2016 through this past September. They are also to pay a $70 million penalty. In a statement obtained by the Illinois Attorney General's Office, Raoul lambasted the tech titan for "its anticompetitive market behavior" and lauded the settlement for both doling out due restitution and pushing Google to steer clear of future foul play.

Caught up in a legal storm, Google faced the wrath of no less than 52 attorneys general who banded together, claiming the company unlawfully hogged the Android app distribution ring and unfairly tinkered with in-app payment processes. Raoul's camp crowed that it effectively put Google in a legal chokehold, dragging the tech bigwig to court and shooting accusations that Google penned restrictive contracts to block rival app stores, sweet-talked key app developers from launching competition, and concocted techie roadblocks to trip up direct app downloading to devices.

The settlement isn't just about the greenbacks, as it forces Google to get its act together by allowing app developers to implement their billing systems, and they can dangle discounts for customers who skip Google's toll booth. App makers can also nudge users toward these cheaper options, and that's supposed to carry on for a healthy five years, the court paperwork details. Not to mention yanking the Play Store's tight grip on coming pre-loaded on Android home screens and letting folks load up third-party apps without scaring them off with ominous warnings, Google's got to play nice here for no less than seven long years per the agreement terms.

For eligible consumers, payments will appear via PayPal, Venmo, or, if they fancy something a bit more traditional, a check or an ACH transfer. More information on this will drop in due course. Tagging along with Raoul in this digital dustup are attorneys general from coast to coast, including Washington, D.C., Puerto Rico, and the U.S. Virgin Islands, all united in the battle against Google's once-unchecked Play Store power plays.