Alphabet (NASDAQ:GOOGL) Inc. has tentatively settled claims that Google Play abuses its control over Android mobile applications, potentially resolving complaints filed by consumers and attorneys general of about three dozen states. The details of the settlement were disclosed in a court filing on Tuesday, however, the specifics, including the settlement amount, were not revealed.
The settlement, if approved, will allow Google to avoid a trial in which 21 million users sought damages in an antitrust lawsuit. These users claimed they were overcharged in the company's app marketplace. This tentative deal follows a decision by U.S. District Judge James Donato in San Francisco in July, who rescinded his order granting the plaintiffs class-action status, indicating that the case could advance as a group lawsuit. However, he also stated that he would reconsider the matter.
The complaints against Google allege that the tech giant inflated Android app prices by taking, with some exceptions, a 30% cut of sales on Google Play. State attorneys general in their 2021 complaint argued that Google used anticompetitive tactics to block competition and ensure that developers have no choice but to go through the Google Play store to reach users.
Lawyers representing Utah's attorney general, proposed class-action plaintiffs and Google have asked a judge to cancel a trial that was scheduled for early November. According to the court filing, if the judge rejects the settlement for any reason, both sides will be "returned to their respective litigation positions." The parties proposed reporting on the status of the deal at an Oct. 12 hearing.
As of now, lawyers for the consumers and a Google spokesperson have not responded to requests for comment regarding this development. The case is known as In Re Google Play Store Antitrust Litigation, 21-md-02981, US District Court, Northern District of California (San Francisco).
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