A federal judge joined critics in questioning Googles controversial $700 million settlement with all 50 US states over anticompetitive Android app store practices pointing out it would only provide small cash payouts to consumers and could protect the company from future lawsuits.
US District Judge James Donato described the Google deal, which would give as little as $2 per eligible user covered in the suit and also included a set of time-limited changes to its app store practices, as a bag of not great for the American public.
It looks to me just as a matter of basic math any single person isnt gonna be getting much, Donato said at a Monday hearing in California federal court, according to Bloomberg.
Donato, who has the final word over whether the proposed $700 million settlement can move forward, also harped on the fact that the agreement would essentially protect Google from facing additional lawsuits over its Play Store practices for seven years.
This seems remarkably broad for the compensation you are proposing to pay for these claims, Donato said.
Additionally, Donato questioned why the deals terms, which first surfaced in December, did not address Googles tactic of charging service fees of up to 30% on major developers within its Play store. The states lawsuit had argued the service fees result in higher prices and less choice for consumers.
Your agreement is telling these 127 million consumers that if they dont like Googles fees they cant sue? Donato reportedly told lawyers for the states.
At the conclusion of the hearing, the judge gave both Google and the states 30 days to explain why the deal should be approved.
The terms of Googles settlement with all 50 states and millions of US consumers first surfaced in December just days after the company suffered a stunning defeat in a related antitrust case raised by Fortnite maker Epic Games.
As part of the deal, Google contribute $630 million to a settlement fund for consumers who may have overpaid for apps as a result of its Play store practices. The remaining $70 million will go toward covering legal fees and penalties in individual states.
A Google spokesman declined to comment on the judge’s remarks and referred to the company’s blog post on the settlement last December.
“We’re pleased to reach an agreement that builds on that foundation and we look forward to making these improvements that will help evolve Android and Google Play for the benefit of millions of developers and billions of people around the world,” the company said at the time.
Epic Games CEO Tim Sweeney was one of the most vocal critics of the settlement describing the terms as an injustice to all Android users and developers and arguing the states could have successfully secured billions in damages had they taken the case to trial.
Donato, the presiding judge in both the Epic Games case and the states case, has been sharply critical of Googles tactics a trend that could haunt the company as both legal battles enter their final stages.
In December, Donato made headlines by publicly blasting Google for what he described as a disturbing effort to destroy key evidence it was ordered to preserve, including employee chat logs, during the Epic Games case.
Donato said he had never seen anything so egregious after viewing disturbing evidence that Google had used an auto-erase feature to delete the internal conversations.
While Google has denied wrongdoing, Donato said the companyswillful and intentional suppression of relevant evidence in this case is deeply troubling to me as an officer of the court.
This conduct is a frontal assault on the fair administration of justice. It undercuts due process. It calls into question just resolution of legal disputes. It is antithetical to our system, the judge added.
Donato said Google would face penalties that would be separate from any final rulings in the Epic case, where the judge is set to determine which business practices Google must discontinue after a jury found it was maintaining an illegal monopoly through its Play Store.
The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.
The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.
That was up from the 3.4% rate seen the previous month. Economists had expected no change.
ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.
“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”
A key driver of food inflation has been meat prices.
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Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.
Image: Beef has seen the biggest percentage increase in meat costs. Pic: PA
High global demand alongside raised production costs have been blamed.
But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.
“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”
It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.
Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”
Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.
“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”
The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.
Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.
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8:30
Is the cost of living crisis over?
Most are still reeling from the effects of high energy bills.
The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.
Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.
The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.
The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.
That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.
Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.
“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.
“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”
Now details of the enormous accidental data breach by a British soldier that put thousands of Afghans’ lives at risk can be discussed publicly – Sam and Anne try to address some of the biggest questions on this episode.
They include:
Why did the government break the glass on using a superinjunction?
Has anyone been sacked?
Why did the Labour government keep the superinjunction in place for so long?
There’s still a bit of time to go over Rachel Reeves’ Mansion House speech. Did it reassure financiers and investors?
An Afghan man who worked for the British military has told Sky News he feels betrayed and has “completely lost (his) mind” after his identity was part of a massive data breach.
The man, who spoke anonymously to Sky News from Afghanistan, says he worked with British forces for more than 10 years.
But now, he regrets working alongside those troops, who were first deployed to Afghanistan in 2001.
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1:59
Afghans being relocated after data breach
“I have done everything for the British forces … I regret that – why (did) I put my family in danger because of that? Is this is justice?
“We work for them, for [the] British, we help them. So now we are left behind, right now. And from today, I don’t know about my future.”
He described receiving an email warning him that his details had been revealed.
He said: “When I saw this one story… I completely lost my mind. I just thought… about my future… my family’s.
“I’ve got two kids. All my family are… in danger. Right now… I’m just completely lost.”
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The mistake by the Ministry of Defence in early 2022 ranks among the worst security breaches in modern British history because of the cost and risk posed to the lives of thousands of Afghans.
On Tuesday, a court order – preventing the media reporting details of a secret relocation programme – was lifted.
Defence Secretary John Healey said about 6,900 Afghans and their family members have been relocated or were on their way to the UK under the previously secret scheme.
He said no one else from Afghanistan would be offered asylum, after a government review found little evidence of intent from the Taliban to seek retribution.
But the anonymous Afghan man who spoke to Sky News disputed this. He claimed the Taliban, who returned to power in 2021, were actively seeking people who worked with British forces.
“My family is finished,” he said. “I request… kindly request from the British government… the King… please evacuate us.
“Maybe tomorrow we will not be anymore. Please, please help us.”