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For Google to avoid sanctions, the European Commission gave the company 90 days to introduce changes and abandon the monopolistic practices of EU regulators
According to the experts of the IT industry, the changes required by the EC could be a real earthquake. It is unlikely, however, that mobile is a huge challenge for Google.
The Influence of Alphabet Inc., a parent company owner of Google, on the ads appearing on the screens of laptops, tablets and smartphones, as estimated by the marketing company eMarketer . This amount represents nearly half (about 44%) of the total Alphabet entries reaching $ 136 billion, which, according to the S & P Global Market Intelligence analytics firm, is expected by the company this year.
For the golden vein, which is the revenue from advertising on mobile devices, Google has arrived in a simple way: offering producer m Android smartphones and tablets for free, provided that, y Including this operating system, manufacturers install other Google applications, such as YouTube, Gmail and Google Maps. Android with the package of 11 other mobile apps in 2013 was installed in 78 percent. all smartphones and 62 percent. tablets. Other mobile devices are based on Apple iOS operating system
The use of smartphones and tablets by Google users installed with Android allows the company to collect a huge database of users and tailor the ads to their needs, tastes and habits.
If Google complies with the demands of the European Commission, smartphone manufacturers will be able to install Google LLC with a series of other apps before you install Android, or even ask the giant to pay for it. installation of the application
. would give mobile device manufacturers and even mobile phone companies a pressure tool on Google to demand Google payments or profit sharing with advertising, "said Mark Mahoney, Analyst for the device advertising market , in an interview with the Wall Street Journal
According to Mohoney and other analysts, the chances that Google will adapt to the demands of the EC are insignificant.
is not defenseless against the EU, because in response to requests from producers, For the company to start sharing its profits, Google may ask Android manufacturers to pay for Android The Android operating system in the original version was created by a small company, startup, with the same name, Google bought Android for $ 50 million in 2005.
In addition, despite the penalty of the C E historically record, it's just equal to the 60-day influence of the Alphabet.
Sundar Pichai, Google's executive director, dismissed on Wednesday the EC arguments that motivated the imposition of a record penalty to mobile device manufacturers imposing illegal restrictions on the company. 39, use of Android.
Representatives of the company claim that the EC's allegations accusing Google of restricting local fake competition, because mobile device manufacturers usually install in them, besides Google and Chrome browsers, also applications of competing companies. In addition, mobile device users can install third-party applications themselves.
"Android has increased the choice, without limiting," says Sundar Pichai
The opinion of Google bosses is shared by Tarun Pathak, an analyst at Counterpoint. Pathak says the majority of Android-based smartphone users are not even looking for competing apps instead of popular pre-installed Google apps.
The experts were therefore not surprised by Google's announcement to appeal the EC's decision. she also made impressions on US investors – Alphabet shares Inc. after her announcement Wednesday during the NASDAQ session, even slightly (from 0.20% to 20:00 GMT) gained in value
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