This is a historic event: Google will have to obtain licenses from Android manufacturers operating in Europe for the first time to avoid sanctions from the European Commission. A policy change, effective from October 29, 2018, that could potentially increase the price of smartphones sold in Europe. Here’s what this means in practice for the consumer.
Android remains free and open source: apps from the Google suite become paid
There is never a question of making Android, strictly speaking, paying. In the blog post Announcing upcoming policy changes, Google writes in full “Android will remain free and open source”. For those who have followed the development of Android since its inception, it is almost obvious: its greatest strength compared to its rival iOS is its openness, open-source side and being free. Conditions necessary to maintain its popularity among developers and possibly users.
The policy change actually targets Google apps that the firm installs by default. We’re talking about the Google “package” here, also known as the GMS acronym: Google, Google Maps, Calendar, Google Play Store… apps that are often required since they’ve been closely linked to the Android user experience since its inception. The firm explains that these licenses will help continue to fund the development and free availability of Android.
Android manufacturers can now sell smartphones without Google apps
So the biggest change is there: from November we will see the appearance in the market of smartphones sold without the GMS suite applications installed by default. So without Google Play Store APK among other essential apps. Such smartphones already exist – most of them were imported from China, where manufacturers prefer to replace Google applications. More or less practical in the context of everyday use.
Still, we can hope that the user can install the Google package himself if he wants to. This is valid on Chinese smartphones without GMS and so far no user has had to pay anything to install APKs of suite apps. At this point, it seems highly unlikely that Google will personally charge you anything if you decide to install these apps yourself. And this is undoubtedly an opportunity to explore free alternatives to Google services on smartphones.
Manufacturers wishing to include Google apps will need to pay for a license
Manufacturers will have to deal with a dilemma: Take advantage of the situation to push their own apps away from their products and risk participating in the disintegration of the Android ecosystem or signing a license agreement with Google – and no doubt reflect this in the price of the smartphone. In fact, this change in policy may increase the price of smartphones, but the price difference will undoubtedly be less noticeable on high-end smartphones than on entry-level and mid-range smartphones.
To imagine a break between high-end smartphones, almost all of which have Google apps, as if nothing had happened. And others… Google also explains in its blog post that Google Search and Chrome, which are on the Commission’s radar as they are offered as default solutions, will be licensed separately. We don’t yet know 100% if manufacturers will be able to install their own apps as well as GMS apps for free when they put Google and Chrome in by default – Google is talking about “new trade deals” without further details.
There will likely be three scenarios for these licenses.
All of a sudden Google plots at least three scenarios for licensing on the blog post. First of all, manufacturers will be able to choose to do without Google applications and offer smartphones with their own applications. In this case, the latter will undoubtedly have to comply with the same obligations as Google and leave users a choice, but they will not have to pay the firm anything. The second case concerns manufacturers choosing to pay for a GMS license and refusing to use Chrome and Google by default – this will likely be the most expensive scenario for manufacturers.
There will also be manufacturers that will pay for GMS apps and offer Google and Chrome by default, possibly at a discount. Google also explains another interesting case that is likely to largely define the scope of this new policy: We will present new trade agreements to partners for Installation and non-exclusive placement of Google Search and Chrome. As before, competing apps can be installed alongside ours.”
Google does not give the cost of these licenses to manufacturers
A still-unanswered question could change everything, or at least have a strong bearing on the effects of this new policy: what price will Google pay manufacturers, depending on the situation? The policy of excessively expensive licenses will force entry-level and mid-range manufacturers to go unlicensed in order to remain competitive, and will undoubtedly create a clearer distinction between mid-range and high-end. An excessively “generous” pricing policy would undoubtedly negate most of the effects of this policy change, at the risk of maintaining an unsatisfactory situation in the eyes of the European Commission.
In addition, although there is talk of establishing a paid license system to comply with the decisions taken in Europe, Google is currently not committing to no longer use the data collected through the same applications. It’s still an app that currently allows it to generate revenue.
What do you think about this policy change? Share your views in the comments.
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