In antitrust settlement, Google to pay $700 million to consumers, US states

In an antitrust settlement with US states and consumers, Alphabet's Google has agreed to pay $700 million and permit greater competition in its Play app store, according to terms revealed on Monday in a federal court in San Francisco.

According to a statement from the company, Google will contribute $630 million to a consumer settlement fund and $70 million to a fund that will be utilised by the states.

Google was charged with overcharging customers by imposing unlawful restrictions on the distribution of apps on Android smartphones and charging excessive fees for in-app purchases. It did not acknowledge wrongdoing.

A judge's final permission is still needed for the deal, Reuters reported.

The contents of the settlement were kept secret in advance of Google's associated lawsuit with "Fortnite" creator Epic Games, despite the lead plaintiff Utah and several states announcing it in September. Parts of Google's app business were found to be anticompetitive by a federal jury in California last week, which agreed with Epic.

Wilson White, Google vice president for government affairs and public policy, in a statement, said the settlement "builds on Android's choice and flexibility, maintains strong security protections, and retains Google's ability to compete with other (operating system) makers, and invest in the Android ecosystem for users and developers."

The company announced that it was extending the ability of app and game developers to provide users with an additional billing option for in-app purchases in addition to Play's billing framework. Google claimed that it had piloted "choice billing" for more than a year in the United States.

Google promised to make it easier for customers to download apps straight from developers as part of the settlement.

Next year, Epic plans to get an order from U.S. District Judge James Donato, who is hearing both cases, that might force Google to modify its Play store.

Google is being sued in further cases that criticise its search and digital advertising practices. In those instances, it denied any wrongdoing.