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Google Android users who have downloaded apps from the Play Store could be set for a windfall in the coming weeks. The technology giant is being forced to pay out $630 million to its users, which will be distributed automatically, along with $70 million to be put in a fund for use by US states affected by the decision.
Any users directly affected, and that are entitled to money, will be notified by Google and be given the option of how to get their money back. Perhaps just as crucially, Google has also now started to enable users to pay for apps using platforms other than Google Pay.
Google Pay And Play
Google Pay is Google’s digital wallet and payment system. It is accepted in stores for contactless, and cardless payments, and it can be used to transfer money to other users. Google Pay casino websites are becoming increasingly common – with the wallet, users can deposit and withdraw money without having to register bank details. Google Pay is extremely versatile. Besides peer-to-peer transfers, online gaming, and shopping, big-name cafes like Starbucks accept Google Pay and consumers can also pay utility bills with Google Pay.
Until recently it was the only payment system Android users could use to pay for apps on the Play Store. Google not only forced users to use the system but took a cut of up to 30% from the app developers.
Lawsuits Against Google
In light of this, the US Department of Justice brought an anti-competitive lawsuit in 2020, and in 2021 Fortnite makers Epic Games and a group of other developers also filed a suit against the tech giant.
The US DOJ lawsuit was settled in September of 2023, although the result of the settlement wasn’t immediately announced. In December of the same year, though, when a jury determined that Google’s actions went against antitrust laws, more information was finally shared.
Next Actions
Google has reduced the cut it takes from Google Pay, which has been rebranded as Google Wallet in a lot of countries, although it has only dropped from 15-30% down to 11-26%. But, more importantly, other payment options are now displayed on the app screen, which means buyers have more options and developers stand to keep more of the money in cases where players opt to use alternative payment methods.
What’s more, Google has been ordered to pay damages totaling $700 million.
Player Payments
$630 million of this should be returned to players, the court ruled. Any player that downloaded and paid for apps between August 16, 2016, and September 30, 2023, will be eligible for payments of at least $2.
Affected users don’t have to apply to get the money. Google systems will automatically determine those who have been affected and contact those users with options of how to have their compensation returned to them. One option, of course, is likely to be Google Play Store credit. Downloads of free apps, including crypto gambling apps, free games, or any free utility apps, will not be entitled to any money back.
Google will also pay a further $70 million into a pool to be used by affected states, which is presumably all of them.