According to a person familiar with the matter on Friday, Alphabet's subsidiary, Google, launched a new licensing business model that will charge hardware companies up to $40 per device. This new licensing model replaces the model previously considered a monopoly by the European Union.
The company announced on Tuesday that the new rate will take effect on October 29 and applies to any new smartphone or tablet that publishes and runs the Google Android operating system in Europe.
According to the source, the fee can be as low as $2.50 and varies depending on the country and the size of the device. The source added that this is the manufacturer's standard and most likely pay around $20.
Manufacturing companies can offset charges by agreeing to bundle Google’s search and Chrome Internet browser for a range of apps, including the Google Play app store, Gmail, and Google Maps. According to the agreement, Google will share parts for device manufacturers. Google search and Chrome generated advertising revenue.
According to confidential documents, the technology report media The Verge reported pricing earlier Friday.
The European Commission found in July that Google abused its market dominance in mobile software, forcing Android partners to pre-install search and Chrome browsers on their gadgets. To this end, the EU filed a record $5 billion fine with Google. Of course, Google has filed an appeal. The EU threatens Google, unless the company ends its illegal act, it will impose additional penalties.
Analysts say the new model should allow Google's competitors, such as Microsoft, to have more room to work with hardware manufacturers to become their default application for search and browsing.
Qwant, a small French search company that has criticized Google, said in a statement on Friday that 'the action of the European Commission prompted Google to finally make it possible for manufacturers to offer consumers such choices.' Satisfied.