Google has agreed to open up the Android mobile operating system to rival search engines in Russia as part of a deal to settle a two-year dispute with Russian competition watchdog FAS. The voluntary settlement in the Moscow District Court of Arbitration means that Google can no longer require exclusivity for its applications on Apple devices and allow manufacturers to pre-install other software.
The main beneficiary of the settlement is expected to be Russian search engine Yandex, which filed the original complaint with FAS. The regulator found in 2015 that Google was breaking competition law by requiring the pre-installation of applications, including its own search tool, on mobile devices using Android. Google was fined RUB 438 million and later appeals were rejected.
The regulator found Google’s agreements with Android device manufacturers restricted pre-installation of competing applications ad favoured its own software. Mobile device manufacturers could only gain access to the Google Play application shop subject to certain conditions including mandatory pre-installation of other Google applications including search and their preferential placement on the device home screen.
To restore competition, the FAS ordered Google to remove the anti-competitive restrictions from its agreements with manufacturers. This includes the exclusivity and priority placement of Google applications as well as the provisions limiting installation of other developers’ applications and services.
As part of the settlement, Google agreed it will no longer demand exclusivity of its applications on Android-based devices in Russia and will not restrict the pre-installation of rival search engines and other applications. It will also develop a tool allowing users to choose a default search engine on their Android devices.
The settlement is valid for six years and nine months and was approved by a Russian court on 17 April. Under the terms of the agreement, Google will still have to pay a total of RUB 439 million in fines.
For the devices 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.
Within a few months, Google will develop for new devices a new Chrome widget that will replace the standard Google search widget on the home screen. This will allow end users of the devices based on the Android OS to see the new choice screen at the first launch of the new Chrome widget. This choice screen enables users to choose Yandex search or Google search or any other search engine from those developers who sign a commercial agreement on their inclusion on the choice screen.
Within 60 days after the approval of the settlement agreement by court, all interested search engines will be able to address Google on discussing potential conditions of their inclusion on the choice screen next year.
Alexander Shulgin, head of Yandex Russian operations, said he hoped the agreement will have implications for similar cases in Europe and elsewhere. Google's licensing terms with Android device manufacturers are already the subject of a similar investigation by the European Commission.
