Google reaches preliminary agreement with US antitrust probe regarding Play Store market power.

Google settles with attorneys general over Android app distribution dominance

Google has reached a tentative settlement with the alliance of attorneys general that filed a lawsuit in 2021, alleging that the search giant abused its dominance in Android app distribution through the Google Play store. Officials claimed that Google was using its monopoly power with Android to unlawfully maintain its monopoly, noting that 90 percent of all app sales occurred through Google Play. According to Bloomberg, the matter has been referred to a judge who, if satisfied, can confirm the settlement and cancel the pending courtroom battle.

Mixed reactions to the settlement

Not everyone is satisfied with the latest deal, as Epic Games CEO Tim Sweeney tweeted that Epic is not included in the settlement. The games developer had sued Google in 2020, alleging that the company had made deals with other major games publishers to exclude rival app stores. Sweeney also expressed concerns about other stores requiring a percentage of each transaction to cover their operating costs.

Future of the trial and settlement terms

Epic’s trial against Google is scheduled for November 6th, but Sweeney indicated in a tweet: “If Google is discontinuing its payment monopoly without imposing a Google Tax on third-party transactions, we will settle and become Google’s ally in their new era. However, if the settlement only compensates the other plaintiffs while retaining the Google Tax, we will continue to fight. Consumers benefit only if antitrust enforcement not only opens up markets but also reinstates price competition.” The specific amount that Google must pay and any required changes have not yet been disclosed but may be revealed at an October 12th hearing.