Recently, an antitrust case involving Google and Epic Games revealed important information about the search giant’s strategy to ensure dominance in the world of Android smartphones.
One of the strategic measures used by Google directly involves one of the most relevant brands in the world of mobile terminals.
The agreement between Samsung and Google includes the payment of $8 billion
Bloomberg News has just revealed that Google paid Samsung a generous $8 billion (about €7.4 billion), over four years, to ensure its services continue to be the standard option on Galaxy smartphones.
Under this agreement, Samsung ensured that services such as Google Search, Google Assistant, and Play Store would be the default services on its phones, while placing its own options such as the Bixby voice assistant and the Galaxy Store in the background.
In return, Google has been able to ensure the dominance of its services in the Android world and discourage the implementation of third-party services.
This information was confirmed by James Kouloutouros, Vice President of Partnerships at Google, during his testimony in the antitrust case with Epic Games. The responsible person highlighted the importance of this understanding with Samsung, and even revealed the crucial role of the South Korean giant.
According to Koulotoros, Samsung’s contribution represents more than half of Google Play Store revenue.
Google shared advertising revenue to ensure its services were prioritized
Google has left no stone unturned to ensure dominance in the Android world. This strategy, in which Samsung is participating, is an integral part of the Banyan project, which includes further measures.
This includes sharing advertising revenue and offering incentives to smartphone brands to prioritize Google services on mobile home screens.
According to the information released, in 2020, Google intends to spend $2.9 billion (about 2.6 billion euros) on this strategy. This amount will increase in 2023 to $4.5 billion (about 4.1 billion euros).
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