Google's antitrust compliance plan to license Android apps for up to €40

Google responds to European Commission antitrust ruling with Android licensing scheme

Google will charge OEM partners a fee of up to €40 to license apps for Android smartphones and tablets in the European Economic Area - but with big discounts according to handset sizes and placement of the Chrome browser and other Google apps.

The decision follows on from July's European Commission judgement that Google had breached European Union (EU) antitrust law, levying a record fine of €4.34 billion in punishment.

The Competition Commission had claimed that, while Android is open-source, Google's insistence that smartphone makers also bundle Google's apps with the operating system breach EU laws.

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

The licensing plan was revealed last week, but the precise fee structure has only just been disclosed, according to documents leaked to The Verge.

Fees could start at $2.50, but will probably average $20, according to Google estimates. Some handset makers, though, could be charged as much as $40.

However, those charges could be cut if handset makers give due prominence to Google's apps, and manufacturers may be given a cut of ad revenue generated via the device.

The plan was initially outlined last week by Hiroshi Lockheimer, senior vice president of platforms and ecosystems at Google.

"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 Lockheimer.

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."

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