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Teknologi Terkini - Posted on 15 November 2023 Reading time 5 minutes
In the context of the case filed by Epic Games against Google, it has been revealed that Google is committed to providing a fund of US$ 8 billion (IDR 125.6 trillion) over four years to Samsung.
This amount aims to ensure that Google's search engine, voice assistant, and Play Store become the default on Samsung mobile devices. This disclosure stems from testimonies presented by Epic Games during the trial, as reported by Phone Arena from Bloomberg's report on Tuesday, November 14, 2023.
James Kolotouros, Google's Vice President for Partnerships, revealed this, stating that Google is designing a strategy to share revenue from the app store with Android mobile device manufacturers. The goal is to ensure that their product is pre-installed with Google Play on the main screen.
Epic Games, the developer of Fortnite, argues that the Google app market violates antitrust laws, citing the agreement with Samsung as a prime example of a deal that began four years ago with an Android phone maker.
Kolotouros's testimony revealed that Samsung devices contribute half or more of the revenue from Google Play. Epic seeks to demonstrate that Google executives are attempting to prevent the emergence of third-party app stores that could reduce Google Play's operational profit.
Epic estimates that this profit will exceed US$ 12 billion in 2021, taking into account the standard 30% revenue cut that Google takes from app developers.
Epic's lawyer, Lauren Moskowitz, investigated Google's internal 2019 presentation called "Project Banyan." This project focused on investing funds to shield the Google Play Store from competition with the Samsung Galaxy App Store. The presentation began with "Existential Questions - How do we continue to maintain Play as the leading distribution platform for Android?"
In 2019, Google proposed to pay Samsung US$ 200 million over four years to include the Samsung Galaxy Store app market in the Google Play Store. However, this plan was canceled, resulting in three agreements signed the following year, totaling US$ 8 billion over four years.
Internal documents submitted during the trial indicate that Google saved nearly US$ 1 billion over four years by withdrawing its request to make Google Play exclusively available on the device's first screen, known as the home screen. This means Google Play will appear on the home screen, providing space for Samsung to add the Galaxy Store, according to the documents.
Under the supervision of Google's lawyer, Glenn Pomerantz, Kolotouros clarified that Google and Samsung never reached an agreement prohibiting Samsung from placing its Galaxy store on the device's home screen.
The essence of this agreement, according to Kolotouros, is to prevent users from switching from Samsung Android devices to Apple iPhones, reinforcing Google's position that its policies and agreements are legitimate efforts in the spirit of healthy competition.
Source: tempo.co
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