For phone makers selling devices in Europe, Google-owned apps like Gmail, YouTube and Google Maps are about to get a new feature: a price.
Alphabet Inc.’s GOOGL, +2.78% GOOG, +2.66% Google said Tuesday that it will start charging device manufacturers license fees to pre-install Google apps on devices running the company’s Android operating system in Europe, a stark shift in the business model for an advertising-dominated company that has until now distributed its consumer software free on mobile devices.
The company disclosed the shift as part of its plan to comply with the European Union’s antitrust order in July that fined the search company €4.34 billion ($5.03 billion) for allegedly abusing Android’s dominance. Google has appealed the decision, but faces an Oct. 29 deadline to implement it or face further fines.
The license fee is the first major sign that the EU’s Android decision — the bloc’s second against Google in as many years — will have an impact on Google’s business model. The EU contends that Google has abused the dominance of the Android operating system, which powers more than 80% of the world’s smartphones, to promote its own mobile-advertising services at the expense of rivals.
An expanded version of this report appears on WSJ.com.
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