![]() ![]() Mobile ad revenues now account for over half of Google's total digital ad revenues. Yet those bundles became Google's core mobile strategy, since they kept users locked into Google's services, gathered data for targeted ads across multiple platforms, and generated revenues from mobile searches and Play store purchases. ![]() Critics claimed those were anti-competitive moves, since they hurt competing services from rivals like Microsoft (NASDAQ: MSFT). Google added an increasing number of first-party apps and services to Android in recent years. Most Android phones in China run Google-free versions of Android, but only because its Search and Play Store are banned in the country. Other hopefuls, like Cyanogen, fizzled out as consumers shunned the idea of a Google-free Android. The only "forked" version of Android that flourished was Amazon's FireOS, which powers its Kindle and Fire TV devices. Over time, Google Android became the dominant version of Android. Most OEMs modified certain aesthetic aspects of Android, but happily retained all of Google's core services. Those apps were big selling points for the devices, which were often dubbed "Google Phones". Instead, it gave it out for free with core Google apps bundled into the OS. Google didn't charge OEMs to license Android. After Apple launched the first iPhone in 2007, those OEMs rushed to license Android for their touchscreen smartphones. Google developed Android as an operating system for mobile devices, which piqued the interest of handset makers. Android was created by Android Inc., a start-up which Google acquired for at least $50 million in 2005. Apple's (NASDAQ: AAPL) iOS, for comparison, is a closed source OS. Understanding the battle over AndroidĪndroid is an open source operating system, which means that anyone can modify the source code. Let's see how this new fine could hurt Google's mobile business. Last year, it levied a $2.7 billion fine on Google for favoring its own shopping service over those of other retailers in its search results. This isn't the first time the EU fined Google. Google said that it would appeal the decision. The Commission states that "at a minimum" Google must stop bundling its search and browser apps with Android, halt "illegal" payments for the pre-installation of Google Search on devices, and stop obstructing the development and distribution of competing versions of Android. ![]()
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