Android WARNING: Could users have to pay for Google software after huge EU fine?

Yesterday Google was hit with the whopping fine by the European Commission.

The Brussels regulator insisted the tech giant had used Android illegally to “cement its dominant position” in user searches.

It was argued that Google requiring Android phone manufacturers to pre-install its Chrome browser and Search app had allowed it to gain an unfair advantage over potential rivals.

Margrethe Vestager, the Competition Commissioner for the EU, stated the huge fine would force Google to change its ways, increasing the chances of competition search apps and browsers to be downloaded.

Following the decision, Sundar Pichai, the CEO of Google, hinted the “free distribution” of Android could be disrupted following the move from the EU Competition Commission.

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It was also suggested the free model of Android depended on apps from Google being pre-installed on devices, meaning companies could have to pay to licence the software in the future.

If this was the case, the price of handsets running Android could be made more expensive for users to compensate for the added cost.

Mr Pichai said: “The free distribution of the Android platform, and of Google’s suite of applications, is not only efficient for phone makers and operators—it’s of huge benefit for developers and consumers.

“If phone makers and mobile network operators couldn’t include our apps on their wide range of devices, it would upset the balance of the Android ecosystem.

“So far, the Android business model has meant that we haven’t had to charge phone makers for our technology, or depend on a tightly controlled distribution model.”

Mr Pichai added the decision from the EU had the chance to “upset the careful balance” Google has “struck with Android”.

The CEO continued: “We’ve always agreed that with size comes responsibility.

“A healthy, thriving Android ecosystem is in everyone’s interest, and we’ve shown we’re willing to make changes.

“But we are concerned that today’s decision will upset the careful balance that we have struck with Android, and that it sends a troubling signal in favour of proprietary systems over open platforms.”

Having its apps pre-installed is a huge revenue driver for Google.

Over half of Google’s advertising revenue comes from mobile platforms, meaning a change in this area could be huge for the tech giant.

Last year eMarketer forecast nearly $50billion would be made by Google in 2017 from mobile ad revenue.

Despite lambasting the tech company with a huge fine, the EU has not made suggestions as to how Google should tackle its competition problem.


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