Google Paid $8 Billion To Make Its Apps Default On Samsung Phones 32
Lauren Irwin reports via The Hill: Google agreed to pay $8 billion over four years to Samsung to make its apps default on Samsung phones, according to information presented by Epic Games in court. James Kolotouros, vice president for partnerships at Google, testified Monday in a San Francisco trial, saying that the company and Samsung were to share app store revenue to ensure Android mobile devices came with Google Play preinstalled. Epic, the company that makes the popular video game "Fortnite," sued Google in 2020, alleging the company's app marketplace violates antitrust laws.
Epic is trying to show that Google executives have discouraged third-party app stores on Samsung devices so it wouldn't cut into the profit of Google Play, Bloomberg reported. According to Kolotouros's testimony, half or more of Google Play revenue comes from Samsung devices. The trial targets the app store that distributes apps for the company's Android software, which powers virtually all the world's smartphones that aren't made by Apple.
Epic alleges Google has created an illegal monopoly on Android apps so it can boost its profits through commissions, ranging from 15 to 30 percent on purchases made within an app. Google argues it was doing so to compete with Apple and its app store, an argument attacked by Epic attorney Lauren Moskowitz. Earlier in the trial, Google's attorney said the company can't be a monopoly because it faces competition from companies such as Apple. Further reading: Apple Gets 36% of Google Revenue in Search Deal, Witness Says
Epic is trying to show that Google executives have discouraged third-party app stores on Samsung devices so it wouldn't cut into the profit of Google Play, Bloomberg reported. According to Kolotouros's testimony, half or more of Google Play revenue comes from Samsung devices. The trial targets the app store that distributes apps for the company's Android software, which powers virtually all the world's smartphones that aren't made by Apple.
Epic alleges Google has created an illegal monopoly on Android apps so it can boost its profits through commissions, ranging from 15 to 30 percent on purchases made within an app. Google argues it was doing so to compete with Apple and its app store, an argument attacked by Epic attorney Lauren Moskowitz. Earlier in the trial, Google's attorney said the company can't be a monopoly because it faces competition from companies such as Apple. Further reading: Apple Gets 36% of Google Revenue in Search Deal, Witness Says
Product Placement (Score:2)
This is just product placement. Happens all the time in many areas.
Re:Product Placement (Score:4, Funny)
I think you'd feel different if you'd just opened a coffee shop and Starbucks paid to have a wormhole installed at your front door which brought your customers into their shop instead.
Re: (Score:2)
Problem is, Starbucks would be paying your landlord, and not you, the owner of the coffee shop.
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I have just seen that Samsung is even worse than Google so this is like getting TBE and Cholera at the same time if you get a Samsung phone.
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If Starbucks managed to do that I would happily concede my coffee shop customers, and celebrate the fact they have managed to invent such a marvelous way to travel, then ask if they can make a wormhole from my backyard to say, a nice beach in Hawaii so I can pop over for a surf anytime I feel like it during those two cold weeks I have to endure in Queensland each year when the temperature plummets to 15 degrees C.
Anti-trust, google's bad plan (Score:1)
By the time the anti trust division decides to take a company to court for trust violations, they usually have so much evidence and the company has gone so far the smart companies negotiate their way out.
The DoJ rarely loses these things.
Google is terribly stupid to take this to court, have all sorts of internal documents exposed showing just how scummy they are, etc, etc, all to very likely end up losing and being broken up into verticals by the court.
Their odds are slim. Their arrogance is tremendous.
Cou
Re:Anti-trust, google's bad plan (Score:4, Insightful)
The DoJ rarely loses these things.
Remember how the MS anti-trust suit turned into a mere slap on the wrist after Bill & Bill had a golf game?
Don't worry, there is nothing a couple billion campaign contributions won't fix, which is a steal compared what Google paid Samsung. The only question is which party would be in place at the right time to receive the money.
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Remember how MS negotiated their way out of being broken up and stopped some of their more egregious behaviors for a while?
That's called smart.
Google? Not so smart.
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Idiot who knows nothing about the Microsoft anti-trust charges and events mods troll.
What a clown show this place is.
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Remember how MS negotiated their way out of being broken up and stopped some of their more egregious behaviors for a while?
No. I do remember that after Microsoft wasn't broken up Windows became the worst spyware of all time, and Microsoft is a known part of PRISM. They didn't negotiate anything. They were told what they were going to do, and they did it.
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Windows becoming spyware was a completely different issue unrelated to anti trust.
You think MS didn't negotiate anything? Whatever. Tomato. Tomatoe. You just like to argue for the sake of it. Have a nice day.
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Windows becoming spyware was a completely different issue unrelated to anti trust.
Keep on believing that. It only happened immediately thereafter, they couldn't possibly be connected! Noob.
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Yeah the department of justice said, "ok we won't break you up but we want you to install a bunch of spyware and ads in windows 11".
And you are the only person aware of this.
Uh huh. Pass that joint, bro.
Re: (Score:3)
after Bill & Bill had a golf game?
I can't imagine who the two Bills are in this case. The attorney general was John Ashcroft when the justice department did its complete about-face and said that it was no longer trying to break up Microsoft. You might also point your finger at George W. Bush, who appointed Ashcroft and who is widely blamed for weakening our anti-trust enforcement.
What is this golf game that you're talking about?
Re: (Score:3)
That principle does apply in normal business situations. But when one company dominates a particular market, that company is no longer allowed to engage in "normal" business practices. This is because that dominance turns them into an irresistible force, one that would-be competitors cannot overcome by just "offering more." That's why we have antitrust law.
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This feels more like McDonalds paying a mall money not to lease to Burger King.
Oh please, on please! (Score:1)
Fuck... I wish I could make Google's apps the *only* ones on Samsung phones, but sadly you can't uninstall them from the Samsung versions of Android. They always force re-install themselves after being deleted. Never buying Samsung again until they fix that flaw.
Re: Oh please, on please! (Score:3)
Discouraged third-party app stores? (Score:3)
Every Samsung phone I've owned since 2011 has had the Galaxy Store on it.
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Well duh, Galaxy Store is owned by...Samsung.
Re:Discouraged third-party app stores? (Score:4)
So it doesn't cut into the profit of Google Play? Of course it does.
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Yes, I'm sure it does cut into Google profits. But the only way Samsung gets their own app store, is if they literally manufacture the phones and customize Android to allow the Galaxy store. The Galaxy store does not appear on any other Android phones made by any other manufacturer. If Epic wants an app store, they aren't likely to have the resources or ability or market clout to build and sell their own phones, just to get their app store on them. Epic wants to put their app store on other manufacturer's p
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Epic wants to put their app store on other manufacturer's phones, and as things stand, they can't.
Of course they can... just no one wants it.
If the manufacturers wanted it, they could add it to their distribution. If the carriers wanted it, they could add it to the phones they push. If the users wanted it, they could add it to their phones.
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You make it sound so easy!
What is the problem? (Score:2)
For Android to be "Android" it has to carry certain apps, I always assumed that one of them is the Google Play Store.
Samsung are something of a P.I.T.A. in that they also release a number of alternative apps of their own - along with the originals from Google. You can't delete them but you don't have to use them, I believe I use exactly one of those Samsung alternatives - and update it via a self-updating process because I've never bothered getting a Samsung ID which is necessary to use their app-store. I
Isn't EPIC bankrupt? (Score:1)
Not sure I see a problem here (Score:1)
Ok, so Google paid $8 billion to Samsung in a business deal. I don’t see any problem here unless Google paid so much that they took a loss in order to put their competition out of business...then there's a problem (...at least one problem)
unlocked phones (Score:1)