Google settles with Russian authorities over Android

Google has entered into a settlement with Russian regulators over Android, which may hurt the profitability of the operating system for Google marginally without causing significant damage.

The settlement comes after Russia's antitrust watchdog ruled that Google was abusing its mobile market position with its insistence that phones running Google Android pre-install the company's apps and services.

Google has now agreed to stop requiring that its offerings be exclusively pre-installed on Android phones sold in Russia. Google will also pay a modest $7.8 million fine.

It will also replace the Google Search widget that appears on Android home screens with a Chrome browser widget that would allow Russian users to select their default Chrome search engine.

Russian search firm Yandex, which had been losing market due to Google's strong mobile position rose 6.7 per cent yesterday in New York.

However, Alphabet's shares were up 1.8 per cent yesterday, amid a 0.9 per cent gain for the Nasdaq.

According to commentators, a bullish Credit Suisse note seemed to have helped, but the Russian settlement might also have played out in Alphabet's favour.

While Google will no longer be allowed to prevent a mobile OEM such as Samsung or Huawei from pre-installing rival third-party apps / services on their Android phones, it would likely be allowed to require that its own apps/services be pre-installed.

The agreement struck by Google following a lengthy battle between Google and Russian authorities, will ease restrictions on Android's built-in search engines to allow for Russian competitors a share of the market.