According to Japanese media, Google local time on October 16th announced that for smartphones sold in Europe, the mail and map software that was previously provided to mobile phone manufacturers will be charged free of charge. EU July ruled that Google violated competition law, Google The move is in response to the EU's penalties. In recent years, the EU has adopted a tough policy on large US technology companies, and companies have ushered in a turning point through the free model supported by advertising revenue.
According to the Nikkei Chinese website reported on October 18th, Google has been providing Android for free smartphones, and it also provides free applications on Android, but this response will greatly change the previous strategy.
Specifically, license fees will be charged for major applications such as the Android App Store 'Google Play Store', the email software 'Gmail', the map software 'Google Maps' and the video software 'YouTube'.
According to the report, in the future, South Korean Samsung Electronics and China Huawei Technologies and other manufacturers selling Android phones must pay a certain license fee to Google, otherwise they will not be able to carry these applications on their smartphones. Google has not disclosed the specific charges.
In July this year, the European Union criticized Google for bundling its main operating system and applications to mobile phone manufacturers. It forced the company's operating system and applications to be "bundled" and asked Google to rectify it. If Google did not correct this behavior within three months. , will further open a large amount of fines. This time Google responded at the last moment of the rectification period.
The report said that Google was dissatisfied with the EU's penalty of 4.43 billion euros fine, and filed an appeal on October 9. The result of the ruling will come out after the 29th, before Google will continue this measure. In addition to 28 EU countries, it also includes Iceland, Liechtenstein and Norway.
Google has always provided apps for free to collect data through services such as search engines to ensure advertising revenue. The global market share of Android is only 1 digit in 2009, and currently it is as high as 88%. The driving force lies in the fact that terminal equipment manufacturers can use it free of charge. The EU has criticized Google for using this high-shared 'diffusion' search engine and other applications to constitute unfair competition.
The report said that the response was considered temporary, but there is a risk to Google that it is difficult to use the Android smartphone to carry the company's application. If the share of search and browsing software is taken away by other companies, It is likely to have an impact on advertising revenue. Google senior vice president Hiroshi Lockheimer said in a statement that Android has expanded the consumer's options and revealed a sense of distrust of the EU.
However, whether or not the EU is willing to promote competition is still full of uncertainty. Google's search engine has an overwhelming performance, and the IT industry generally believes that 'there is no competition now.'
According to the report, the license fee will be passed on to the price of the equipment, which may increase the burden on consumers. In the EU, China's Xiaomi and other mobile phone manufacturers have gained a certain market share with low-cost smartphones. The response of these manufacturers has received much attention.
Google’s appeal against the EU’s decision, it’s unclear how much the company will actually make concessions. However, if the lawsuit is going to be long-term, it will definitely affect Google’s business.
According to reports, in the past disputes between browsers between Microsoft and the European Union, competitors' Google browsers ushered in a good deal, dissolving Microsoft's base camp.
In addition to Google, after 2016, the EU also asked the relevant countries to recover taxes on the grounds that Amazon and Apple enjoyed improper tax incentives. In addition, the European Union introduced the General Data Protection Regulations (GDPR) to strengthen personal information protection rules at the end of May. In Europe, strict policies on large US IT companies are increasing.