A federal judge also joins critics in approving Google’s controversial $700 million settlement with 50 states over anticompetitive practices in the Android app store, with just a small cash payment to consumers. , noted that it could protect the company from future lawsuits.
U.S. District Judge James Donato ruled that the deal with Google, which awards just $2 per eligible user in a lawsuit, also includes a series of time-limited changes to app store practices, making it ” “It’s not very good content,” he said. American public.
“It seems to me that just a matter of basic math, no one person can benefit much,” Donato said Monday at a hearing in California federal court. According to Bloomberg.
Donato, who has the final say on whether the proposed $700 million settlement can move forward, said the agreement effectively protects Google from further lawsuits over its Play Store practices for seven years. He also talked about the fact that
“The damages you are proposing to pay on these claims seem very extensive,” Donato said.
Donato also questioned why the terms of the deal, which were first revealed in December, did not address Google’s tactic of charging major developers up to 30% service fees within the Play Store. The state’s lawsuit argued that service fees would increase prices and reduce consumer choice.
“Does your contract tell these 127 million consumers that if they don’t like Google’s prices, they can’t sue?” Donato reportedly told state attorneys.
At the end of the hearing, the judge gave both Google and the state 30 days to explain why the deal should be approved.
The terms of Google’s settlement with all 50 states and millions of U.S. consumers were first revealed in December, after the company was sued in a related antitrust lawsuit filed by Fortnite maker Epic Games. This was a few days after the defeat.
As part of the partnership, Google is contributing $630 million to a settlement fund for consumers who may have overpaid for apps as a result of Play Store practices. The remaining $70 million will be used to pay each state’s legal costs and fines.
A Google spokesperson declined to comment on the judge’s remarks, pointing to the company’s blog post about the settlement from December.
The company said: “We are pleased to be able to reach an agreement on that basis and to advance the evolution of Android and Google Play for the benefit of millions of developers and billions of people around the world. We look forward to making these improvements that will help you.” time.
Epic Games CEO Tim Sweeney was one of the settlement’s most vocal critics, calling the terms “unfair to all Android users and developers” and urging the state to take the case to court. They argued that they could have safely secured billions of dollars in damages.
Donato, who presides over both the Epic Games case and the state cases, has been harshly critical of Google’s tactics, a trend that could trouble the company as both legal battles enter their final stages. .
In December, Donato made headlines when he publicly accused Google of its “disturbing” efforts to hide key evidence it was ordered to preserve during the Epic Games lawsuit, including employee chat logs. .
“I’ve never seen anything this bad,” Donato said after seeing “disturbing evidence” that Google used auto-wipe to delete internal conversations.
Although Google denies wrongdoing, Donato said it is deeply disturbing to him, as a court official, that the company “knowingly and intentionally withheld relevant evidence in this case.”
“This action is a frontal attack on the fair administration of justice. It ignores due process. It calls into question the resolution of legal disputes. It is antithetical to our system,” the judge said. added.
Donato said Google will be fined separately from the final judgment in the Epic case. In the case, a judge will decide which business practices Google must stop after a jury finds that Google maintains an illegal monopoly through the Play Store.
