Google Agrees to Settle the Android App Market Dispute for $700M

In order to resolve claims that it was suppressing competition against its Android app store, Google has agreed to pay $700 million and make a number of other concessions. 

This is the same problem that went to trial in a different case that may lead to even more significant changes.

Google agrees to pay $700M in Android app store settlement

The settlement's contents were disclosed recently in documents submitted to a federal court in San Francisco, although Google and state attorneys general reached an agreement in September. 

The revelation was made one week after a federal court jury censured Google for using anticompetitive practices in its Play Store for Android applications.

$630 million of the settlement with the states would go toward compensating American customers who were duped into using a payment processing system that, according to state attorneys general, increased the cost of digital transactions made through applications that could be downloaded from the Play Store. 

The Android OS that runs on the majority of cellphones worldwide is catered to by that store.

Google charges commissions on in-app purchases ranging from 15% to 30%, much like Apple does in its iPhone app store. 

State attorneys general have argued that these costs drove up prices above what they would have if there had been an open market for payment processing.

Evidence provided during Google's recent Play Store trial indicated that the company made billions of dollars in profit each year from such commissions.

Read more: Google Play Store Ruling Is Bad News for Android Users