SAN FRANCISCO - Google will charge hardware firms up to $40 (R575) per device to use its apps under a new licensing system to replace one that the European Union this year deemed anti-competitive, a person familiar with the matter said.
The new fee goes into effect on October 29 for any new smartphone or tablet models launched in the European Economic Area and running Google’s Android operating system, the company announced on Tuesday.
The fee can be as low as $2.50 and rises depending on the country and device size, the person said. It is standard across manufacturers, with the majority likely to pay around $20, the person added.
Companies can offset the charge, which applies to a suite of apps including the Google Play app store, Gmail and Google Maps, by placing Google’s search and Chrome internet browser in a prominent position. Under that arrangement, Google would give the device maker a portion of ad revenue it generates through search and Chrome.
Tech news outlet the Verge reported the pricing earlier on Friday, citing confidential documents.