Google tentatively settles class action lawsuit over Play Store fees

Google of Alphabet (GOOGL) reportedly settled a class action lawsuit that accused it of overcharging its customers through its Play Store in the United States


  • Google has tentatively settled a class action lawsuit accusing it of abusing its monopoly power to overcharge customers through its US Play Store.
  • If approved, the settlement will allow Google to avoid a lawsuit.
  • Epic and Match plan to pursue their anticompetitive action against Google.

Google allegedly violated US federal antitrust rules by using its dominant market position to trick consumers into paying more than they otherwise would have. The lawsuit, which represents 21 million consumers, was brought by more than 30 US states. The plaintiffs claimed that without Google's influence, they would have had more options and would have been charged less by the apps.

The amount Google will owe Salary has not been disclosed but could be revealed at a hearing on October 12. If approved, the settlement will allow Google to avoid litigation.

Epic Games CEO Tim Sweeney wrote in a post on social media platform X that Epic Games was not a party to the proposed settlement. Epic and Internet Match Group, which owns Tinder, are apparently planning to continue their lawsuit against Google, which has a November trial date. Sweeney said Google inflates prices for in-app transactions by 30%, compared to payment processing fees in competitive marketplaces of 3%.

“If Google ends its payments monopoly without imposing a Google tax on third-party transactions, we will settle down and be Google's friends in their new era,” he said. he said, adding that the company would fight if the settlement was simply to reimburse plaintiffs.

In 2021, the attorneys general states said Google blocked competition, forcing developers to use its Play Store to reach users.

The actions of Alphabet were down 1% in early trading Wednesday after the news, but have gained more than 52% year-to-date.


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