You may get a $2 Venmo from Google’s massive new settlement

Google will pay $700 million in a settlement agreement with the attorneys general in all 50 states, who alleged that the company ran its Android app store as an anticompetitive monopoly. The sides shared details on Monday, after reaching a tentative agreement in September.

The majority of the settlement – $629 million – will go to Android users who purchased an app on Google Play or used its billing service from Aug. 16, 2016, through Sept. 30, 2023 (the remaining $70 million will go to the participating states).  If that applies to you, you’re likely in for a cash deposit — albeit an incredibly meager one. 

The states’ motion in support of the settlement agreement, filed in San Francisco on Monday, says every eligible customer will get “at least $2,” plus additional payments in proportion to their spending. For the approximately 102 million affected Android users, it’ll likely not enough to buy a coffee, and even $700 million is pittance to a company worth $1.7 trillion.

On the bright side, actually getting the money promises to be easy: If an Android owner used the same email address for their Google Play account as a PayPal or Venmo account, the settlement payment will go directly to the payment platform. Otherwise, customers will get an email suggesting they open up a Venmo or PayPal account or select another payment mechanism, according to the Monday motion.

In the motion, the state attorneys general promise that the payment system will ensure most people get their money. “Because most of the funds will be distributed to Eligible Consumers automatically, the States conservatively expect a 70% distribution rate, which compares extremely well with similar settlements,” the motion said.

The fact that users must use Google Play to purchase apps for their phones was central to the litigation. The states (originally there were 39, but every state, the District of Columbia, Puerto Rico and the U.S. Virgin Islands joined the settlement) alleged that Google used an array of anti-competitive tactics to maintain the store’s dominance.

Among those tactics is that Google takes a 15% to 30% commission on app purchases, a practice, the plaintiffs said, that forces consumers to pay higher prices. “Google collects its 30% cut by forcing consumers to use Google Play Billing to buy apps and in-app content, and by prohibiting app developers from suggesting alternative ways to purchase content,” the motion said.

The 30% cut from large developers isn’t going away, but Google did agree to a slew of minor changes to how it runs its app store, each of which has a time limit. The company will let developers offer alternative billing for in-app purchases for five years, for example. (The Verge has the full list.)

As is usually the case with large tech settlements, like Meta’s $725 million privacy case this year, the company is admitting no wrongdoing. The settlement agreement said, “Google disputes that Plaintiffs’ claims have merit and that Plaintiffs, or Eligible Consumers, would be entitled to any relief.”

The plaintiffs, or the states, maintain that their monopoly allegations have merit. But they note in the settlement agreement that continued litigation would be complex and time-consuming, so they “concluded that the Settlement is fair, adequate, reasonable, and in their best interest and the best interests of Eligible Consumers.”

While this settlement puts an end to the states’ litigation, Google still faces a fight over its app store policies. A San Francisco jury decided Dec. 11 that the app store and Google’s billing service constituted an illegal monopoly, coming down on game maker Epic’s side after a high-profile trial. Google told the Verge that it plans to appeal the verdict.

Hear of anything happening at Google or another tech company? Contact tech reporter Stephen Council securely at [email protected] or on Signal at 628-204-5452.