Alphabet’s Google has reached a US$700 million settlement in an antitrust case with U.S. states and consumers. The agreement includes a US$630 million payment to a settlement fund for consumers and US$70 million for states.

Eligible consumers will receive at least US$2, with additional payments based on their Google Play spending between 16 August 2016, and 30 September 2023.

The settlement addresses allegations of Google overcharging consumers through restrictions on app distribution on Android devices and fees for in-app transactions. While Google did not admit wrongdoing, the settlement aims to foster competition in the app market.

This settlement follows a California federal jury’s recent decision, concurring with “Fortnite” maker Epic Games, that parts of Google’s app business were anticompetitive.

Google’s Vice President for Government Affairs and Public Policy, Wilson White, emphasised that the settlement builds on Android’s choice and flexibility, maintaining security and competition. As part of the agreement, Google will expand options for app and game developers to offer alternative billing alongside Play’s system.

The settlement marks a significant development in antitrust enforcement against major digital platforms in the U.S. and addresses concerns about fair competition and consumer charges in the app market.