The European commission $5 billion ruling on Google, may lead Google to charge Android devices makers for using the Android OS.
Google’s reaction to EU 5 Billion Antitrust fine
The Android ecosystem is beginning to see the aftermath of the European Commission’s $5 billion antitrust fine imposed against Google in July 2018.
Google agreed it would conform to the decision by unbundling the Google Android Applications, enabling OEMs to skip Chrome and other Google Applications
The result is that, since advertisement income from these Google revenue was used to help Android development, Google will begin charging Android device producers that permit Google licenses yet pick the unbundled route.
Presently, according to a report from The Verge, we’re getting a thought of exactly how much this more adaptable application licensing plan will cost OEMs. Referring to “private records” that were shown to the site, The Verge says Google will charge Android device makers as much as $40 per device if they choose not to utilize Google’s favored Android setup. The charge is different depending on the country and the pixel density of the device’s screen.
The EU is divided into three levels, with the UK, Sweden, Germany, Norway, and the Netherlands in the most costly level.
Lower-end phones in countries that have a lower charge can cost as little as $2.50 per device. Tablets, if any of those still exist, get their very own evaluating level that is even across all countries and tops out at $20.
Everything sounds extremely confusing, is it?, But in reality, if we were to apply this pricing structure on the Galaxy S9 sold in the UK for 720, Google’s charge will mean that the phone will have a 5.5% increase, thus will be selling at $760.
Furthermore, Google is taking a bold step to make sure the OEMs wallets are swindled, In the event that OEMs don’t pre-installed Chrome and other Google Apps, the report claims they will never again get a share of income obtained from Google chrome use by clients. The report says the new guidelines will kickoff in February 2019.
What does this Action by Google mean?
What this means is, Google now is trying whatever it can to protect its revenue base. Remember Google has been benefiting from OEMs for quite a long time, in short, Google has been enjoying revenue generated from these pre-installed Apps since Android OS introduction in September 2008.
You can just imagine, it is very hard for the search giant to just let it go. So the decision by the EU to stop Google from forcing Android device manufacturers to include Google Apps in their phones, if succeeded, will mean a great loss in revenue