Key Points
(Bloomberg) -- A federal judge appeared skeptical of Alphabet Inc.s $700 million proposed settlement with states and consumers to resolve claims that the Google Play app store abuses its market power..
At a hearing Monday, US District Judge James Donato said the accord seems to give short-shrift to consumers both in the overall compensation it provides and the broad release it gives the company from future lawsuits..
In a separate class action on behalf of almost 21 million consumers, Google was accused of inflating Android app prices by taking as much as a 30% cut of Google Play transactions..
The lawsuits threatened billions of dollars in revenue generated by the sale and distribution of apps through Google Play. . Donato kicked off the hearing by pointing out to lawyers representing the state AGs that the settlement would ask the 127 million class members to essentially release any Google Play Store claims for the next seven years..
When an attorney for Google countered that the release is needed so that the company doesnt get immediately sued again for the same conduct, Donato said, If you keep doing the same thing over and over again why isnt it appropriate for you to get sued?".
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