A federal court judge has shown apprehension towards Alphabet Inc.’s proposed $700 million settlement offer to consumers and states over allegations that Google abused its market dominance. The settlement was put forth in response to claims that Google Play violated anti-trust laws by limiting competition in the app distribution and payment processing sectors.
The proposed resolution would require Google to pay a considerable sum and also alter its Google Play policies, thereby reducing its market dominance and promoting a more competitive environment. Despite these recommendations, critics argue the settlement is too light on Google, failing to adequately address its monopolistic behaviour and stifling effect on market growth.
Some critics are part of another class-action lawsuit, which accuses Google of inflating Android app prices by imposing a 30% levy on transactions made on the Google Play platform. This could pose a significant risk to Google Play’s multibillion-dollar revenue generated from app sales and distribution.
During the hearing, Judge Donato expressed concerns about the level of protection the proposed agreement would provide Google from subsequent Play Store-related lawsuits. He also conveyed doubt regarding the distribution of the settlement fund and Google’s service charges.
To close the session, Judge Donato set a 30-day deadline for attorneys to provide reasonable proof of the proposed settlement’s fairness. Worth noting is Google’s previous loss in a similar lawsuit filed by Epic Games Inc., the long-term effects of which remain uncertain.
