In a major antitrust settlement, Google has agreed to pay $700 million and implement several changes to address accusations of stifling competition on its Android app store. The tech giant had been accused of using illegal restrictions and overcharging consumers for in-app purchases. The settlement comes ahead of a legal battle with Fortnite maker Epic Games, who had accused Google of having a monopoly on the mobile app business.

The settlement requires Google to offer alternative payment options to developers and consumers and allow more competition on its Play Store. Similar to Apple's App Store, Google charges commissions ranging from 15% to 30% on purchases made in apps. The charges generated billions in annual profit, according to court evidence.

As part of the settlement, Android app developers will have more flexibility in offering different payment options to consumers, instead of being automatically processed through Google's commission system. This move aims to increase competition for payment processing. Additionally, Google will make it easier for consumers to download apps from developers directly, reducing its control over app distribution.

State attorneys argued that Google's commission structure drove up prices higher than they would have been in a more competitive market. The settlement includes a compensation fund of $630 million for US consumers who were impacted by the inflated prices. Eligible consumers, estimated to be around 102 million people, will receive at least $2 (??1.60), with some potentially receiving additional payments based on their Play Store spending between August 2016 and September 2023.

The settlement with the US states marks a significant win for antitrust enforcement, with lawyers representing the states stating that "no other US antitrust enforcer has yet been able to secure remedies of this magnitude from Google" or any other major digital platform.

Google's settlement comes after a federal court jury recently found the company guilty of deploying anticompetitive tactics in its Play Store. The jury's decision adds weight to the ongoing legal battle with Epic Games, which challenged Google's app business practices.

Google has denied any wrongdoing. However, the settlement demonstrates the company's willingness to address concerns related to competition and payment practices on its platform.