Google Will Start Charging Phone Makers for Europe App Store

Google Will Start Charging Phone Makers for Europe App Store
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Google will start charging smartphone makers that want to install its app store and services for devices sold in Europe, according to Bloomberg. The company says it must make changes to comply with a European Union antitrust order in July that brought a record 4.3 billion euro.

Starting Oct. 29, new phone models that install the Play store and a bundle of Google apps, including Gmail, YouTube and Google Maps, must pay a licensing fee, the Alphabet unit said in a blog posting. Phone manufacturers can choose to add Google’s Search and Chrome browser apps for free or install alternatives.

Licensing fees paid by manufacturers are likely to be moderate and could be recouped by revenue-share agreements for placing Google apps prominently on a screen. Changes could take months, if not more than a year, to trickle into the market given the normal development cycles for mobile devices.

Under the changes just unveiled, manufacturers are no longer prevented from experimenting with phones loaded with different apps or using an operating system based on the Android software but not carrying the Android name. This may not harm Google if it relies on the strength of its brand to label phones as Android. That may mean more of the Android green robot stickers at phone stores to highlight the Google-approved models.