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The € 4.3 billion fine imposed Wednesday by the European Union on Google could have a direct impact on Android, the most used mobile operating system in the world . The European Union accuses Google of forcing smartphone manufacturers to pre-install applications such as search and YouTube on phones in exchange for the use of the system. Following the announcement, Google's CEO, Sundar Pichai, said the company would appeal.
The decision could change the business model of Android, which is now used for free by 1,300 manufacturers worldwide – according to Google, there are 24,000 models of devices with the platform, which has today more than 1 million applications. Created in 2008 to compete with the Apple iPhone, Android has gained market share by being open source and free and is now used in more than 80% of mobile devices.
"Google has invested billions of dollars to make Android what it is today," Pichai said in the official blog. "This investment makes sense because we can give manufacturers the ability to pre-install a set of popular apps, some of which generate revenue for Google." If such an agreement is banned in Europe, it is possible that the search giant software, in a similar model to Windows Windows
This can drive up the price of smartphones in European countries. "For lack of choice, manufacturers can choose to pay for Android if it's needed," said IDC's research director, Reinaldo Sakis, in state. "The most plausible estimate is that this sum is pbaded on to consumers."
For the Professor of Business Administration of Getúlio Vargas Foundation (FGV-SP), Fernando Meirelles, Google "will intervene" because of the decision, but the impact will be small, since the l 39; installation of applications may be suggested otherwise. "Google will have to find a way because it can not take a fine of $ 5 billion every week."
The fine imposed by the European Union hits Google's main source of revenue: advertising displayed in search results. Today, mobile devices already account for more than half of the research done on the tool. "If manufacturers can not install applications on a large number of devices, this can harm the balance of the Android ecosystem," says Pichai.
Investigation
The fine announced on Wednesday is the result of an investigation started three years ago by Margrethe Vestager, European Commissioner for Competition. The initial suspicion was that Google was embarrbading manufacturers like Samsung, Sony, Motorola and Huawei to pre-install the company search on Android devices. The survey also pointed out that Google has made payments to some manufacturers and telecom operators to activate the Chrome browser on and off the Internet. Google search by default.
"Google has applied illegal practices to consolidate its dominant position in the online search market, which is detrimental to consumers and illegal," warned Margrethe. "Google should stop its practices in the next 90 days, otherwise it risks new penalties." O Estado of S. Paulo
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