To comply CCI order, Google preps new agreement with phone-makers in India

Every aspect of Google apps and Android software licensing will be quantified and there will be less scope for any free service arrangements for end users

[Representational Image] Credit: AFP FILE PHOTO

Search engine giant Google is reportedly readying a new agreement with Android phone sellers in India.

A tipster who goes by the moniker @Za_Raczke (Kuba Wojciechowski) on Twitter has got hold of a draft copy of the new India region-specific version of the Mobile Application Distribution Agreement (IMADA) document. He says phone makers can sell devices without 11 core Google apps such as Maps, Google Search, Youtube Music, Chrome, Drive, Gmail, Meet, Google Photos, Google Play Movies, and TV and others. And, offer just the Google Play Store app and users can choose to install them on their own.

Phone makers also get another option to sign a general MADA, where they choose to pre-install them on their phones. However, Google has to pay the latter for including its core apps.

Currently, it isn't the case. Google is said to have a unilateral agreement of offering Android software with pre-loaded Google Apps, and Android phone makers had no choice but to accept the offer.

Taking cognizance of the report, in late 2022, the Competition Commission of India (CCI) slapped a penalty of Rs 1,338 crore penalty on Google for misusing its dominant position in the Android mobile device ecosystem.

Earlier this year, Google after having received no respite from National Company Law Appellate Tribunal (NCLAT) and Supreme Court, announced to comply with the CCI order.
It has specifically mentioned that going forward OEMs (Original Equipment Manufacturers) such as Samsung, Xiaomi, Oppo, Vivo, and others will be able to license individual Google apps for pre-installation on their devices.

Must read | Google to comply with CCI's directives on Android phones in India

Also, the company will be releasing new updates to all compatible Android phones to bring new options to replace Google Search with other apps as default search engines.

It should be noted that Google pays billions of dollars each year to Apple, to make Google Search default on Safari browser on iPhones, iPads, and Macs. And, of course, users will also get the option to replace the Google Search engine with DuckDuckGo, Bing, Brave, and other alternatives.

As of now, there is no information on how much Google will be paying Android phone makers to install its core apps. But, it will be a multi-billion dollar deal for sure.

The new agreement is expected to be signed in Q2. This means, new phones that are scheduled to launch in the April-June period or after that, may come with just Google Play Store if phone makers decide to sign IMADA.

Or else, they can forge a general MADA deal and offer core Google apps. This way, it creates an avenue to earn good revenue from Google. Having said that, the former still has to pay a good premium to license Android software, which no longer is available for free.

No matter which option-- IMADA or MADA, the Android phone makers choose to agree to, Google will lose a good chunk of revenue flow.

Currently, Google's major source of revenue comes from ads on its apps and Google invests a pretty good chunk of revenue in securing the Android ecosystem from cyber threats. With a possible dent to the earning with the new IMADA, Google will be forced to charge a premium to license Android to phone makers.

There is a high probability of an increase in the price of Android phones in the coming months.

Like the cellular data plans, Android phones are available at dirt-cheap prices in India compared to global regions. But, things may change soon.

So far, Google has not responded to the reports in the media.

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