In a recent development, Alphabet Inc.’s Google (NASDAQ:GOOGL) has reached a tentative settlement in a high-profile class action lawsuit concerning its U.S. Play Store. The lawsuit, which accused Google of violating U.S. federal antitrust regulations by overcharging customers, has been a contentious legal battle. The terms of the settlement have not been disclosed as of now.
This class action lawsuit, representing more than 30 U.S. states and encompassing 21 million consumers, contended that Google’s alleged monopoly over the Play Store ecosystem restricted consumer choice and potentially led to higher costs for apps. The plaintiffs argued that, without Google’s alleged anticompetitive practices, consumers could have enjoyed a wider array of options and potentially spent less on app purchases.
Parties involved in the settlement, including legal representatives for the attorney general of Utah, who is leading the coalition of states, have jointly requested the cancellation of the trial originally scheduled for November 6.
Google, consistently maintaining its innocence throughout the litigation, has chosen not to comment on the proposed settlement. Similarly, lawyers representing the consumer plaintiffs and the states, as well as the District of Columbia, have refrained from commenting on the tentative agreement at this time.
It’s important to note that the settlement remains subject to approval by the court, and the final terms will only be disclosed following this approval process.
This legal battle is not an isolated incident for Google, as the tech giant is currently facing several other lawsuits that claim it has leveraged its Play Store to generate substantial profit margins through questionable tactics aimed at preserving its monopoly in the sale of Android apps and in-app purchases. A key argument in these lawsuits is that Google has unlawfully mandated the use of its payment tools by certain apps, thereby securing a substantial 30% cut of digital goods sales.
Epic Games, a prominent player in the gaming industry, is among those that have levied such claims against Google. Notably, Epic Games is not part of the tentative settlement with Google. Epic Games’ founder and CEO, Tim Sweeney, stated on the social media platform X (formerly known as Twitter) that if Google were to end its alleged payments monopoly without imposing a “Google Tax” on third-party transactions, they would consider settling and collaborating with Google in its new phase. However, Sweeney made it clear that if the settlement retained the “Google tax,” Epic Games would continue to contest it.
Another entity involved in this legal dispute is Match Group (NASDAQ:MTCH), but they have chosen not to comment on the ongoing matter.
The case, titled “In re Google Play Store Antitrust Litigation,” is currently under consideration in the U.S. District Court, Northern District of California, under case number 21-md-02981.
