The European Union recently imposed a penalty on Google for forcing smartphone manufacturers using Android to install Chrome browser and giant search engine. That’s why Google is considering changing licence entries. Unfortunately, this means that smartphone manufacturers will have to pay Google up to $40 for every device sold in Europe.
Antitrust laws are designed to protect the market against abuse. That is why the European Union is closely monitoring the actions of giants who have a dominant position. This is how the window for choosing a web browser in Windows systems was created. In the same way, the European Union forced Microsoft to prepare special versions of the operating system without default multimedia programs (Windows 7 N, 10 N and 10 NK). In July, the European Commission imposed a fine of EUR 4.3 billion on Google for the distribution of Android. A few days ago, Hiroshi Lockheimer, who is responsible for Google’s ecosystem, said the giant would adapt to the requirements of the European Commission.
Producers of Android smartphones will pay if they do not choose to pre-install the Chrome browser and Google search engine
Adapting to the rules imposed by the European Union may contribute to the growth of smartphone prices. Google will modify its licence agreements in such a way that producers will be able to use the Play store and, for example, Gmail without installing Chrome and Google search. However, it is these two applications that generate the most revenue. That’s why Google is about to introduce licensing fees. Journalists from The Verge editors came to secret documents that opened the door for secrecy. The amount of the licence fee will depend on the country of sale of the smartphone and the pixel density on the screen of the phone. The most expensive will be in Germany, Norway, Sweden, Great Britain and the Netherlands. There, the licence for smartphones with displays above 500 ppi is to be as high as $40 per device. The second threshold from 400 to 500 ppi was valued at 20 dollars. On the other hand, the margin for smartphones with screens below 400 ppi will amount to 10 dollars. At the same time, these prices only apply to the most lucrative for Google countries. In countries where advertising revenues are lower, the licence for the cheapest smartphones is expected to cost 2.5 dollars.
The new licence fees are to apply from February 1, 2019. It is also interesting to be able to lower or even abolish the aforementioned costs. If the smartphone manufacturer decides to install the Chrome browser and Google search engine, it can partially or completely be released from licence fees. We must also remember that the above information is unofficial and has not been commented on by Google. It is also not known whether the European Commission will not consider such actions unfair. Officials will certainly check the amount of fees claimed by the giant.