The settlement includes $630 million for consumers and $70 million for states.
Eligible consumers will receive at least $2 and potentially more based on their spending on Google Play.
All 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands joined the settlement.
Google was accused of overcharging consumers through unlawful restrictions and fees on its app store.
Google did not admit wrongdoing.
The settlement terms will allow for greater competition in the Play app store.
Google will expand billing options for in-app purchases and simplify direct app downloads from developers.
The settlement is described as providing significant relief for consumers.
Epic Games, which had a related trial with Google, is expected to make its own proposal to the judge.
Google still faces other lawsuits challenging its search and digital advertising practices.