Russia, Google reach $7.8 million settlement on Android case

Russia, Google reach $7.8 million settlement on Android case

Not only is the company being fined $7.8 million Dollars, but it has agreed to allow the pre-installation of third-party apps.

"We are happy to have reached a commercial agreement with Yandex and a settlement with Russia's competition regulator, the Federal Antimonopoly Service, resolving the competition case over the distribution of Google apps on Android", a Google spokesperson said in a statement.

Google's two-year antitrust battle with Russian competition authorities is finally coming to an end. The company also can't restrict competing search engines and applications from being preinstalled on Android devices. These conditions comprised mandatory pre-installation of other Google apps together with Google Play, their preferential placement on the devices' home screen as well as mandatory installment of the Google search engine as default.

Alphabet Inc.'s Google settled its dispute with Russia's antitrust watchdog in an agreement that opens the way for local search engine Yandex NV to be pre-installed on Android devices.

FAS issued the penalty in November 2015, and Google has now lost all of its appeals in the Russian courts. The fine amounts to 9 percent of Google's revenue in Russian Federation in 2014, plus inflation, according to TASS. Furthermore, the giant tech company must offer a tool that will enable users to select the default search engine of their own choice on Android-based smartphones and tablets.

While Yandex framed the decision at the time as a way to "restore competition on the market", it came as the search engine's traffic began declining due to the popularity of Android.

"Implementation of the settlement's terms will be an effective means to secure competition between developers of mobile applications", said FAS head Igor Artemiev. "The settlement's execution will have a positive effect on the market as a whole, while giving developers additional options for promoting their products".

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