Business

The reason why Google started charging for its applications in Europe is here for us to know

Google is a company which has transformed the internet in its own way. It is a company which offers invaluable things to internet users and many have made a living out of Google’s services without actually paying them a penny. This public service that Google offers by making money without taking it from the users is something that makes it the biggest company in the world. It has hundreds of subsidiaries and Android is one of them which it lends to other companies to develop for absolutely free.

Android is free for any smartphone maker to use. It is the operating system which is used by almost all the smartphone makers out there. The main reason being it is free and the second being that it can be tweaked by the makers as they want it to be. The developing options on Android are countless and that makes over 80% of the smartphone makers in the world to use it. Google revealed that 24000 different devices use Android as of now.

This free usage has allowed companies like Samsung and Huawei to compete with Apple’s iPhone. By giving out Android for free, Google has kind of created a monopoly in the market. It also gives out free services such as Gmail and also the Play Store from where you can download over 1 million applications developed by different companies. However, all of this free stuff Google is giving out might come to an end in Europe.

There were some handset makers that said that the amount of free stuff Google offers, it makes it kind of impossible for them to make devices which are independent of Google. However, this is going to change as European antitrust ruling which took place in 2018 will now force Google to charge for its applications or services like Gmail, Google Maps, Google Assistant or the whole of Android for that matter. This might change the whole complexion of the competition out there.

This ruling came out after a series of data breaches and a lot of other scandals such as spreading hate messages and false news via certain applications. Google was fined by the European rule makers for a fee of $5 billion or 4.34 billion euros. That said, the new licensing terms instilled later in 2018 prove that now Google will charge for its services.

Prior to this Google paid many handset makers to install Gmail, Google Maps, and many other applications before selling the handset. This kind of made Google the king of applications and operating systems as it ruled out every possible competition in that market. Google is, however, fighting the antitrust ruling that was passed in the summer. This decision to charge is not full and final and it may be a temporary decision until the American giant is fighting the decision. If the ruling goes in the favor of Google then it will immediately go back to its prior strategies of offering free services.

– Unmesh Phule

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