Google: delivery of apps with Play Store is necessary for investments in Android

Google needs the money from ads in pre-installed apps on Android devices. By supplying apps like Search with the Play Store, it can earn enough money to continue investing in Android. That is what Google tells the European Commission.

Google will answer the allegations of abuse of its market power with Android on Thursday afternoon. In theory, manufacturers have the choice to supply Android without Google apps, but then the Play Store download store is not on the device either. Without the Play Store, users cannot install many apps and the device is a lot less attractive, so that all manufacturers feel compelled to work with Google.

Google argues that it does not have to charge a license fee with the mandatory delivery of all apps prescribed by the search giant in Android. That would keep the prices of smartphones lower and thus benefit consumers. In addition, Google makes money from the ads, especially in Search. As a result, it can continue to invest in the development of both Android and the Play services.

In addition, Google disputes that it has a dominant position in the smartphone market. In addition, it points out that it competes with Apple’s iOS. However, the European Commission calls a market share of 50 percent or higher a dominant market position, something that Android is far above in Europe. According to recent market research, that share fluctuates between 75 and 80 percent.

By providing services such as Search and the Chrome browser, the Commission believes that Google is hindering competition. Google counters that competing makers of mobile operating systems such as Apple and Microsoft do the same. In addition, only Android manufacturers can provide apps that compete directly with Google’s. Many manufacturers do that too; many smartphone makers include Microsoft apps and, in addition, manufacturers often have their own apps such as a browser and music player, in addition to those from Google.

The European Commission can now respond to Google’s defense by issuing a ruling. This could be an acquittal or a fine, for example. In addition, Google and the Commission may reach a compromise behind closed doors. The outcome of the case could take years due to objection procedures.

In addition to this complaint, the European Commission also handles complaints about the advertising policy of the search company and about Google Shopping. Google responded to the latter last week.