$700M settlement with Google a ‘step forward,’ says Fil-Am attorney general of California

LOS ANGELES – California, along with 50 other states and three US territories, announced a $700 million settlement with Google on Tuesday for monopolizing the Android smartphone application market.

The state’s Attorney General Rob Bonta called the settlement one of the most significant and far-reaching during a press conference announcing the multistate settlement.

Google will pay restitution to customers who made purchases on their Android app store between August 2016 and September 2023. These consumers were harmed by the company’s anticompetitive practices, Bonta said.

Attorney General Rob Bonta said his office wants to send a warning to Google and other corporations that they cannot flout antitrust laws. AGRobBonta/X

“The settlement we are announcing today is a step forward to returning fairness and competition to the market and returning ill-gotten gains back to users,” Bonta said.

The Fil-Am attorney general said his office wants to send a warning to Google and other corporations that they cannot flout antitrust laws.

“Google’s anticompetitive behavior hurt consumers by limiting their options, inflating prices on in-app purchases, and creating an unfair marketplace designed to funnel ill-gotten profits back to the company,” he said.

The settlement, which is subject to court approval, provides $700 million in recovery for the coalition represented by 53 attorneys general.

“This settlement sends a clear message: The California Department of Justice is committed to protecting consumers, holding industry accountable, enforcing antitrust laws, and ensuring a fair and competitive market,” Bonta said.

Those eligible for restitution do not have to submit a claim. They will receive automatic payments through PayPal or Venmo, or they can receive a check or ACH transfer. More details about payment distribution will be announced later, according to Bonta’s office.

The multistate coalition of attorneys general sued Google in 2021 alleging that the company unlawfully monopolized the markets for Android app distribution and in-app payment processing.

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 to the Google Play store and created technological barriers to deter consumers from directly downloading apps to their devices.

The lawsuit was led by the attorneys general of California, North Carolina, Utah, Tennessee, and New York. It includes the attorneys general of all 50 states, the District of Columbia and the territories of Puerto Rico and the Virgin Islands.

A copy of the settlement is available here.

Two months ago, Bonta led three dozen other state attorneys general in suing Meta, the parent company of Facebook and Instagram, over allegations it harms the mental health of young people.