Google compensated handset makers for not using third-party app stores

New unreported sections of Epic's antitrust complaint against Google reveal new details about what Google went to to undermine third-party app stores on the Android platform. According to the new text, starting in 2019, Google launched a "Prime Device Program" in which Android phone makers received a larger share of search revenue than usual.

In exchange, OEMs agreed to ship their devices without pre-installed third-party app stores. Specifically, they followed a rule that banned "apps with APK installation privileges" without Google's approval, leaving the Play Store as the only built-in digital marketplace for software.

What's on the money?

Devices that achieve Premier Device status receive 12% of Google search revenue, compared to the 8% they normally receive. Google has further sweetened the deal for companies like LG and Motorola, offering them between 3% to 6% of what customers spend in the Google Play Store on their devices.

The complaint alleges that the Premier Devices Program has been a resounding success that has only further cemented the Play Store's dominance.

Motorola and LG have almost all (98% and 95%) of their devices included in the Premier program. The giant Chinese conglomerate BBK, which makes and sells a number of Android devices under the OPPO, vivo and OnePlus brands, among others, has designated about 70% of its new devices as "Premier". Companies like Sony (50%) and Xiaomi (40%) were not as committed to the program.

Source: Leah Nylen