Google has agreed to pay $8 million (roughly Rs. 65 million) to settle claims that it used deceptive advertising to promote the Pixel 4 smartphone, according to Texas Attorney General Ken Paxton. The search and advertising giant has come under scrutiny by both the federal government and state attorneys general for antitrust and consumer protection violations. In this particular case, Paxton’s office alleged that Google hired radio announcers to give testimonials about the Pixel 4, even though the company had refused to allow them to use one of the phones.
Settlement reached
Google will pay $8 million to settle the claims made against it by the Texas Attorney General’s office, in what is the first agreement of its kind regarding the company’s Pixel 4 smartphone advertisements. The company was accused of misleading consumers by hiring radio announcers to give positive reviews of the phone, despite the fact that Google had refused to let them use the device beforehand. The settlement holds Google accountable for lying to Texans for financial gain, said Texas Attorney General Ken Paxton. In a statement, Google said it takes compliance with advertising laws seriously and was happy to resolve the issue. It is unclear whether similar claims have been made against Google in other states.
Antitrust lawsuits
Google, which is owned by Alphabet, has been under scrutiny by both the federal government and state attorneys general over antitrust and consumer protection matters. The company has been accused of monopolistic practices, and the federal government has filed two antitrust lawsuits against it. The ongoing investigations are looking into whether Google’s practices harm competition and consumers, and whether the company is unfairly controlling the flow of information on the internet. The cases could take years to resolve, and Google could face hefty fines and have its business practices overhauled in response to the lawsuits.
Indian inquiry
Google is also facing an inquiry by the Competition Commission of India (CCI) after allegations that its service fee for in-app payments breaches an earlier antitrust directive. Indian startups and Tinder-owner Match Group have asked the watchdog to investigate Google’s new User Choice Billing (UCB) system, which they claim is anti-competitive. The CCI issued an order saying that it believes an inquiry needs to be made into the allegations. The investigation is the latest in a series of complaints that have been made against Google in India over the past few years.
What is User Choice Billing?
User Choice Billing (UCB) is a service offered by Google that allows Android users to make payments within apps using the payment method of their choosing. The service was launched in India in September 2020 and was initially available for Google Play Store purchases. However, a few months later, Google expanded the service to include other types of transactions, including in-app payments. Critics have accused Google of monopolistic practices and say that the service fee the company charges is anti-competitive.
Conclusion
Google’s $8 million settlement with the Texas Attorney General’s office is the first agreement of its kind regarding the company’s Pixel 4 smartphone advertisements. The company has been accused of misleading consumers by hiring radio announcers to give positive reviews of the phone, despite the fact that Google had refused to let them use the device beforehand. The settlement holds Google accountable for lying to Texans for financial gain. In addition to the settlement, Google is also facing an inquiry by the Competition Commission of India (CCI) over allegations that User Choice Billing breaches an earlier antitrust directive.
