Google Fined by EU to Charge $40 Per Device For Android
Google to charge $40 per device
It is well known to everyone that Android is most widely used Mobile operating system in the market and it is famous because of its user friendly environment. Well, there are various news going viral about tech giant Google to start charging $40 per device who run Android OS.
This law imposed by European Union that tech giant google changes their rules of the game. Now company, definitely the Google, will charge a licensing fee for manufacturers who include some Google applications in their smartphones. It is not confirmed that the charge would be but there are some documents that reveal the charge could be as high as $40 per device.
To remind you some recap about this, In July, this year, the European Commission fined google with the reason that the company taking advantage of Androids market leadership to force distribution of search application and Chrome to the various smartphone manufacturers. In return, google provided them a license to access google play store for free.
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These practices were considered as anti competitive by European Commission. “denied rivals the chance to innovate and compete on merits” these are the words said in the entity. After appealing the fine, tech giant google decided to change its licensing rules the company with the determinations of European Commission authorities.
This is the point from which license collection appears. Android started as opensource and zero cost as long as there is no any Google app pre-installed. But to make it usable, everyone need some applications and services which are not free and open source. Hence it is necessary to license them.
In the recent agreements, it is the condition that, if the manufacturer installs any Google application for example: Google search, Chrome, Google maps, Google Calendar etc, there was no charge for licensing previously.
Now, Google allowed the installation of competing applications such as Bing App, If manufacturer want to install it on google home screen, this is by the European Commission.
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As a precaution, the tech giant Google is treating the matter with secrecy, but the documents obtained by The Verge indicate that this licensing scheme will be kept optional. If a manufacturer wants to install Google applications but does not follow the conditions of the company, it can do so, but paying for licensing.
There are difference packages to install google apps, depend on different regions. In such countries like Germany, Netherlands and Norway, manufacturers will have to pay about $40 per devices with more than 500ppi on the screen, $20/ unit with pixel density between 400 and 500 ppi, and $10 for device with less than 400 ppi. In some other countries, however, the minimum rate may be as low as 2.5$ per unit.
Why did Google decide to charge for the licenses?
Actually, tech giant google was not required to charge the fees but the European commission has determined that the company is more flexible about the distribution its applications.
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The search engine and chrome are the company’s top revenue generators on mobile devices, billing is a way to compensate to other missing apps.
Another form of compensation is non-revenue sharing: the documents by European Commission also shows that, if manufacturer choose not to install chrome by factory default or don’t want to put it in the bottom of the system, it will not receive any revenue from displaying ads on the browser even chrome is supposed to install by user manually.
This was the history behind the fee charging from device manufacturer which was imposed by European commission. You are welcome to discuss on this topic with your valuable comments.