Russia’s Federal Antimonopoly Service (FAS) announced today the end of a two-year legal procedure with the involved parties reaching a voluntary settlement in a Moscow arbitration court.
“The settlement will help eliminate the violations of the antimonopoly legislation previously detected and will ensure competition on markets of mobile applications, especially mobile search,” stated the FAS.
In a case launched in February 2015 by Google’s local competitor Yandex, the FAS ruled a few months later that Google was violating Russia’s antimonopoly legislation and would face penalties.
The US giant was accused of hindering the ability to pre-install competing applications on mobile devices by forcing manufacturers to bundle some Google apps, including Gmail, Google Search and Google Play.
“As a result, pre-installation of mobile applications, which is the most efficient app distribution channel, was fully reserved by Google,” according to the antimonopoly authority.
Google’s illegitimate demands also included “preferential placement of Google apps on the home screen of the devices and mandatory installment of the Google search engine as default.”
Courts of two levels upheld the validity of the antimonopoly authority’s decision.
In August 2016 the FAS fined Google 438 million rubles ($6.7 million) for abusing its dominant position in the Russian market.
Google then agreed a settlement with the FAS.
According to the terms of the settlement agreement (as described by the FAS), Google will:
- no longer demand exclusivity of its applications on Android-based devices in Russia;
- commit itself not to restrict pre-installation of any competing search engines and applications, including on the default home screen;
- refrain from stimulating pre-installation of the Google search as the only general search engine;
- be committed to securing the rights of the third parties to include their search engines into the choice window.
New Chrome widget “in a few months”
The settlement agreement also stipulates that previously signed agreements will not be enforced, should they contradict to the terms of the settlement.
For the devices that are currently circulating on the Russian market, Google will develop an active “choice window” for the Chrome browser which at the time of the next update will provide the user with the opportunity to choose their default search engine, the FAS adds.
As for new devices, the US company has committed itself to develop “within a few months” a new Chrome widget to replace the standard Google search widget on the home screen. This widget will allow users of Android based devices with the GMS package to opt for an alternative search engine such as Yandex search, or that of any other search engine.
All interested Russian search engine providers will be able to discuss the conditions of their inclusion to the choice screen as soon as next year.
Yandex CEO “thanks” Google
“We managed to find a balance between the necessity to develop the Android ecosystem and interests of third-party developers to promote their mobile applications and services on Android-based devices. The settlement’s execution will have a positive effect on the market as a whole, while giving developers additional options for promoting their products,” summarized Igor Artemiev, Head of the FAS.
“Today is an important day for Russian consumers as Google has agreed to take significant steps that open up its Android platform in Russia,” wrote Yandex co-founder and CEO Arkady Volozh in a blog post. “Under the terms of the settlement, 55 million Russian Android users will be offered a choice of search engines on their mobile devices. Smartphone manufacturers will also have more freedom to select the apps that they preinstall on devices.”
In addition to expressing gratitude to the FAS “for applying the law in a manner that effectively and efficiently restores competition,” Volozh also thanked Google: “for their cooperation and for recognizing the value of openness.”
“We have always thought Google plays a constructive role in the Russian market. Competition breeds innovation,” the Yandex CEO stated, some 20 years after launching Russia’s leading search engine.
This agreement marks a major development for Android in Russia, but it could also spill out into other regions, in particular the European Union, notes VentureBeat.
“That Russia has managed to get Google to commit to opening Android up could be a precedent, and give other legislative bodies more confidence in their push against Google,” the online publication writes.
