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 Google will be offering two options to phone makers— 1) the latter will get the option to offer phones without any core Google apps such as Maps, Google Search, Youtube Music, Chrome, Drive, Gmail, Meet, Google Photos, Google Play Movies, and TV and others. And, there will be only one Google Play Store app on the phone. 

The second option is Google will pay Android phone makers to pre-install them on their phones. 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 reject Google’s offer.

Or else, they can forge a new agreement with Google to add the latter’s core apps for a price. 

It should also be noted there will be another dilemma for phone makers, as they will now have to pay a license fee to use Android software. As of now, Google offers Android software almost for free to phone makers. Google used to earn revenue from ads on its apps and invests a pretty good chunk of revenue in securing the Android ecosystem from cyber threats.

Now, 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. 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.

DH has reached out to Google for comment. We will update the report with the response as soon as we get it.

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