Google to charge a licensing fee for Android apps in Europe

Google responds to anti-trust fine over bundling of apps with Android by levying licence fee for apps in the EEA

Google has responded to the judgement by the European Commission that the bundling of apps with Android is a breach of anti-trust law by declaring that it will charge a licensing fee for the bundled apps in future - but only in Europe.

The European Commission levied a fine of €4.34 billion on Google in July and demanded that the company provide a remedy for what it claims were a string of anti-market abuses. The Commission gave the company three months to comply or risk daily fines being added to the total.

While Google is appealing against the judgement, it could still be on the hook for the daily fines.

In particular, Google was accused of structuring its Android business so as to compel manufacturers to pre-install the Google search app and the Chrome browser as a pre-condition for licensing the Play Store. Without the Play Store to download apps, smartphone makers would not be able to sell their devices.

Google was also accused of making payments to certain OEMs and mobile operators to exclusively pre-install the Google Search app on devices, and barred OEMs from also making smartphones with forked versions of the Android app.

"We've been working on how to comply with the decision. We have now informed the European Commission of the changes we will make while the appeal is pending," revealed Hiroshi Lockheimer, senior vice president of platforms and ecosystems at Google.

He continued: "First, we're updating the compatibility agreements with mobile device makers that set out how Android is used to develop smartphones and tablets.

"Going forward, Android partners wishing to distribute Google apps may also build non-compatible, or forked, smartphones and tablets for the European Economic Area [the EU, as well as countries in EFTA].

"Second, device manufacturers will be able to license the Google mobile application suite separately from the Google Search App or the Chrome browser… we will introduce a new paid licensing agreement for smartphones and tablets shipped into the EEA… Third, we will offer separate licences to the Google Search app and to Chrome."

The new licensing policy will come into effect on 29 October "for all new smartphones and tablets launched in the EEA". Lockheimer did not disclose a figure for the licensing fee that Google is proposing to charge.

While Android is based on the open-source operating system Linux and is, therefore, also open source, if smartphone makers want to sell their devices in volume they also need Google's proprietary suite of mobile apps. In particular, Google Maps and the Play store. Google makes money from Android by selling advertising.

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