The consequences of the fine of the European Union against Google | tecno.americaeconomia.com | AETecno

The company warned that the economic model of its Android system could be the main affected by this measure.

The decision of the European Union to fine Google for the advantageous position of Android, could have more consequences than the payment of US $ 5,000 billion . That's at least what the Alphabet company has revealed, ensuring that if Chrome and its search applications were to disappear from the operating system, its free business model could be in trouble.

"If mobile phone manufacturers and mobile network operators could not include our applications in their broad range of devices, this would could affect the balance of the ecosystem of Android ", points out the publication.

In addition, Pichai ensures that much of this model depends precisely on the "Including these applications in the phone" Until now, the Android business model has made sure that we have not had to charge phone manufacturers to use our technology, or rely on a strict distribution model t controlled (…) but we are concerned that today 's decision disrupts the cautious balance we have achieved with Android and that it' s up to us. it sends a warning signal for proprietary systems on open platforms, "commented the CEO. 19659003]

Up to now, the European Union has not suggested how Google would respond to this fine in addition to its payment. However, it is clear that they are looking to allow phone makers to include their own applications on computers, excluding Chrome and other search options online.

A decision which, according to Google, could imply problems for the company since these systems constitute more than 50% of their advertising and profit networks .

In the event that this business model changes, the company could start charging Android licenses to the phone makers. However, this option would be viable only in the face of a decrease in the use of business applications, due to the changes requested by the European Union. Something that badysts say is not really possible, and would leave Google's position as a call to public opinion and not really to notice a change in its business system.

According to Mark Skilton researcher, consultant and professor of practice in the information and management systems of Warwick Business School, "Google has always been contradictory, since is a market facilitator who also wants to control it The company says it has to compete with other major players and that the exchange to an alternative research service is "to click reach ", but in my opinion, they already have about 80% of mobile devices with pre-installed software from Google Android, that's the problem."

[19659003] The university ensures that the central challenge is "related" with consumers and their real options to opt for other services, instead of star locked into the overall vision of the world. a single provider of the digital economy. "Faced with this, Skilton is calling on consumers " We must remember that Google" defines the market "and is not just an innocent bystander ."

The solution to this problem, says the professor and researcher, will be solved once Internet pbades to its next level of evolution "it will be a more distributed world and based on limits". With the rise of the Internet of Things, the number of connections to smart homes, products, transportation and everything is multiplied. According to Skilton, this will be the next battleground for Google and the big tech players, since the measures the Commission has taken the European Union and new similar decisions that will arise in the future, are already becoming a major problem for large international technology companies.