Google to charge Android OEMs up to $40 per device to use apps

Google will charge device OEMs up to $40 per device to use its apps under a new licensing system to replace one that the European Union this year deemed anti-competitive, Reuters reported.
Google Android
The company announced on Tuesday that the new fee goes into effect on October 29 for any new smartphone or tablet models launched in the European Economic Area and running Google’s Android operating system.

The fee can be as low as $2.5 and rises depending on the country and device size. It is standard across manufacturers, with the majority likely to pay around $20.

Companies can offset the charge, which applies to a suite of apps including the Google Play app store, Gmail and Google Maps, by agreeing to bundle Google’s search and Chrome internet browser and feature them prominently. Google would give the device maker a portion of ad revenue it generates through search and Chrome.

The European Commission in July found Google abused its market dominance in mobile software to force Android partners to pre-install search and Chrome on their gadgets. It levied a record $5-billion fine, which Google has appealed, and threatened additional penalties unless the company ended its illegal practices.

The new system should give Google’s rivals such as Microsoft more room to partner with hardware makers to become the default apps for search and browsing.