New HampshireDepartment of JusticeOffice of the Attorney General

News Release

For Immediate Release
December 19, 2023

Contact:
Michael S. Garrity, Director of Communications
michael.s.garrity@doj.nh.gov | (603) 931-9375

Alexandra C. Sosnowski, Assistant Attorney General
Alexandra.C.Sosnowski@doj.nh.gov | (603) 271-2678

Attorney General Formella Announces $700 Million Settlement with Google over Play Store Misconduct

Concord, N.H. - New Hampshire Attorney General John M. Formella and a bipartisan group of 52 other attorneys general today announce a $700 million agreement with Google in their lawsuit about Google’s anticompetitive conduct with the Google Play Store.

“This is all about standing up for consumers and small business owners. As technology continues to play a daily role in our lives, we cannot allow an industry giant to illegally use monopoly power to squeeze small businesses trying to compete in digital markets. In this case, Google used its dominant market position to limit competition and harm consumers through commissions on in-app purchases by consumers. This settlement marks an important outcome, as it will have a lasting impact,” said Attorney General Formella. “Google has agreed to modify its business practices in the Play Store. Our expectation is that this will truly open competition for app stores on Android devices and allow developers to offer cheaper and more competitive pricing of their apps and in-app purchases to consumers.”

Google will pay $630 million in restitution, minus costs and fees, to consumers who made purchases on the Google Play Store between August 2016 and September 2023 and were harmed by Google’s anticompetitive practices.  Google will pay states an additional $70 million for their sovereign claims. People eligible for restitution do not have to submit a claim – they will receive automatic payments through PayPal or Venmo, or they can elect to receive a check or ACH transfer. More details about that process will be forthcoming.  The settlement also requires Google to make their business practices more procompetitive in a number of important ways.

The attorneys general sued Google in 2021 alleging that Google unlawfully monopolized the market Android app distribution and in-app payment processing.  Specifically, the States claimed that Google signed anticompetitive contracts to prevent other app stores from being preloaded on Android devices, bought off key app developers who might have launched rival app stores, and created technological barriers to deter consumers from directly downloading apps to their devices. The states announced a settlement in principle on September 5, 2023, and today released the finalized terms of that deal.

The settlement requires Google to reform its business practices in the following ways:

  • Give all developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years.
  • Allow developers to offer cheaper prices for their apps and in-app products for consumers who use alternative, non-Google billing systems for at least five years.
  • Permit developers to steer consumers toward alternative, non-Google billing systems by advertising cheaper prices within their apps themselves for at least five years.
  • Not enter contracts that require the Play Store to the be the exclusive, pre-loaded app store on a device or home screen for at least five years.
  • Allow the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years.
  • Revise and reduce the warnings that appear on an Android device if a user attempts to download a third-party app from outside the Google Play Store for at least 5 years.
  • Maintain Android system support for third-party app stores, including allowing automatic updates, for four years.
  • Not require developers to launch their app catalogs on the Play Store at the same time as they launch on other app stores for at least four years.
  • Submit compliance reports to an independent monitor who will ensure that Google is not continuing its anticompetitive conduct for at least 5 years.

For much of this case, the attorneys general litigated alongside Epic Games and Match, two major app developers.  Match announced a separate settlement earlier this year, while Epic Games took its case to trial.  A jury unanimously found that Google’s anticompetitive conduct violated the federal antitrust laws early last week.

For the full settlement and release, click here. Portable Document Format Symbol

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New Hampshire Department of Justice
1 Granite Place South | Concord, NH | 03301
Telephone: 603-271-3658