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Briefing
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- App Licensing Fee – Google announced it will charge licensing fee to Android manufacturers to include its apps (e.g. Google Maps, Gmail and YouTube) in their devices starting October 29, 2018
- Europe Only – New policy applicable only to Europe after Google faced anti-trust allegations from European Commission, resulting in £3.8 billion (US$4.9 billion) fine in July 2018
- Estimated Fees – Cost as high as $40 per device for devices with pixel density higher than 500 ppi, $20 for devices with 400-500 ppi, $10 for devices under 400 ppi, $2.50 for lower-end phones, and up to $20 per device for tablets
- Forked Devices – Google said in its blog that Android partners who want to distribute Google apps may build forked smartphones and tablets for European zone
- Search Revenue Sharing – Google will also share search revenues with partners only if Chrome is pre-installed and placed at the home screen dock
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Accelerator
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Market Disruption
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Business Model and Practices
Business Model
and Practices
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Sector
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Information Technology
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Source
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Lockheimer, H., "Complying with the EC’s Android decision",
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Bedford, T., "Google introduces licensing costs for Android manufacturers",
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Stolyar, B. and de Looper, C., "Google may charge up to $40 per Android device for app suite following EU ruling",
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Kastrenakes, J. and Brandom, R., "Google app suite costs as much as $40 per phone under new EU Android deal",
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AcceleratingBiz analysis
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Original Publication Date
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October 16, 2018
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