Google is the clear market leader for mobile operating systems and Android is dominating with around 90% market share. It was a huge shock when Google announced this weekend it will stop licensing Android and its native apps for new smartphones in Turkey. Which practically means no new smartphone models can be imported in to Turkey, even though existing models will not be effected.
Google’s decision came after a lengthy dispute with Competition Authority of Turkey, which completed last week with a huge fine against the tech giant. Google penalized, for failing to open Android platform for competing apps, such as email, search engine and maps apps totally. Google has been ordered to pay 0.0005 of its revenues from Turkey for each day they fail to comply, which means 18.25% of its revenues in a yearly basis. Even though fine is on a daily basis, what Competition Authority demands require deep changes on Android software and business model and it looks like Google is not intending to meet those demands.
Cancellation of Android License
After the fines, Google has to send a special brief to smartphone manufacturers to announce cancellation of Android and apps licenses starting at December 12. Apps that will not be available to manufacturers include Google Search, Google Play, YouTube, Gmail, and other Google applications.
In their official statement Google said they could not reach an agreement with the Competition Authority of Turkey, but they will “continue to work with the Competition Authority to resolve this issue as quickly as possible”. Since this decision has an incredible effect for all network providers and phone manufacturers (except Apple) a big pressure on Competition Authority is expected.