Unveiled today during the ongoing Epic v. Google lawsuit, it was disclosed that Samsung devices took the lion’s share of Google Play revenue, comprising more than half. As of early 2019, Google’s Vice President for Partnerships, James Kolotouros, testified about this revelation, as reported by Bloomberg.
Having entered into three separate agreements, Google agreed to pay Samsung a whopping $8 billion over four years from 2020. This covenant ensures that Search, Assistant, and the Play Store are the default services on Samsung devices. Before this initiative, Google proposed but later abandoned the idea to prevent Samsung from featuring the Galaxy Store on homescreens. Google emphasized improved Android user experience to compete with Apple and to attract potential iPhone switchers in court.
Besides Samsung, non-Samsung partners, such as non-Android OEMs and wireless carriers, stood to benefit from Google’s plans. Google offered $2.9 billion in 2020, a figure set to grow to $4.5 billion by 2023. This investment guarantees the availability of search, Play, and other essential apps on supported devices. Under RSA 3.0, this deal also includes sharing Google Play and some Search ad revenue with manufacturers. As detailed by The Verge, manufacturers abiding to RSA 3.0 Premier tier are offered a revenue share program:
- 20 percent of the net basic ad revenue
- 10 percent of the net optimized ad revenue
- 5 percent of the net optimized Play transaction revenue
- 15 percent of the net premier ad revenue
- 20 percent of the net Play transaction revenue
For non-Premier tier devices, manufacturers have the option to preload competing app stores.
Google also requires “no less than 6 security updates in a calendar year.” as a result of these agreements.
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