Washingtonians who have used the Google Play Store since 2016 could be eligible for a share of more than $10 million the company is forking over to resolve a lawsuit that claimed Google unlawfully monopolized the Android app distribution market.
The $700 million nationwide resolution, of which Washingtonians will get about $10.6 million in reimbursements, is a result of a lawsuit filed in 2021 by 37 states and Washington, D.C., that accused Google of burying competition to its app store. The lawsuit, filed in part by Washington Attorney General Bob Ferguson, claims the practice forced Android app developers to raise their prices to cover Google’s fees.
Eligible Android users paid for apps through the Play Store or as in-app purchases. Eligible users will receive at least $2, with additional payments depending on how much they spent on the Google Play Store between August 2016 and September 2023, according to a news release from the attorney general.
Eligible users do not have to submit a claim. Payments will automatically be made directly to PayPal or Venmo accounts associated with Play Store accounts. A settlement administrator will contact users for whom an automatic payment is not possible to arrange for a different method of reimbursement.
The lawsuit claimed Google blocked non-Play Store apps from advertising on Google’s search platform, resulting in more than 90% of all Android apps being downloaded from the Google Play Store. Additionally, the lawsuit asserted Google offered incentives to Samsung to use the Play Store instead of its own Galaxy app store and paid off cellphone manufacturers not to make their own app stores and instead preload the Play Store on devices so it’s impossible to delete.
“Because of Google’s exclusionary conduct, even large, sophisticated content distributors like Amazon have failed to create a competitive alternative to Google Play Store,” the news release said.
In a statement, Google said it is “disappointed that the verdict did not recognize the choice and competition that our platforms enable.” The company said has always allowed users to download alternative app stores and will allow app developers to implement an alternative billing option alongside Google Play’s billing system.
In addition to the $700 million payout, Google is required to allow third-party apps to be installed on Android Phones and make system improvements that support the apps.
An estimated 2.9 million Washingtonians use an Android phone, and about 40,000 app developers live in Washington, according to the Attorney General’s Office.
In April, Ferguson joined a U.S. Department of Justice lawsuit against Google that claimed the company monopolized online advertising, including the technology that many online publishers use to offer ad space.
Of the $700 million Google is paying the states, $630 million is set aside for consumer reimbursements. The remaining $70 million will be split between the states to pay civil penalties and other fees.
