Google LLC has agreed to settle a lawsuit that accused it of breaching antitrust rules with the Play Store.

Reuters reported the development today, citing a court document that was filed on Tuesday. The settlement reached by Google is described as a tentative agreement. It will have to be approved by a court before it becomes final.

Two years ago, a group of 37 state attorneys general sued Google over its business practices in the mobile market. The lawsuit, which represents 21 million consumers, focused on app purchases made through the Play Store. When the lawsuit was filed, the Play Store required developers to process app transactions using Google’s own payment system, which charged a commission of up to 30%.

There are competing payment systems that charge lower commissions. The lawsuit alleges that by preventing developers from using those lower-cost services, Google inflated app transaction prices for consumers. 

The search giant has updated its policies since the lawsuit was filed. In October 2021, Google lowered the fees it applies to many Play Store transactions from 30% to 15%. More recently, the company started allowing developers in India, Australia, Indonesia, Japan and the European Economic Area to use billing systems other than its own for app transactions.

The state attorneys’ general lawsuit was given class-action status last year. A few days ago, a court reversed the move, a development that is believed to have “dramatically” reduced the potential damages Google could be ordered to pay. Before the lawsuit’s class-action status was removed, the plaintiffs estimated that the search giant may owe up to $4.7 billion in damages.

The financial terms of the tentative settlement that Google reached this week were not disclosed. According to Ars Technica, Google and the state attorneys general plan to provide an update about the settlement on Oct. 12. Both parties have reportedly asked to cancel a trial that was scheduled to take place on Nov. 6.

Before the settlement can be finalized, it must be approved by the state attorneys general and Google parent Alphabet Inc.’s board. Afterwards, the parties will have to submit a so-called long-form settlement agreement to the court for approval. They expect to prepare the document within 30 days.

In 2021, the year the lawsuit was filed, video game developer Epic Games Inc. also sued Google over its Play Store policies. The company’s complaint likewise focuses on the restrictions that the search giant applies to app transactions. In a post on X today, Epic Games Chief Executive Officer Tim Sweeney stated that the company “isn’t a party to the proposed Google Play settlement” and indicated it plans to continue the litigation. 

Image: Google