Alphabet, the parent company of Google, had a rough start to the week as their shares dropped by 4 percent on Monday and the decline continues. The reason for this decline was due to news that Samsung may no longer have Google as the default search engine on their phones. Currently, Google is the default search engine on Samsung phones.
Recent reports suggest that Samsung may replace Google as the default search engine on its phones with Microsoft’s Wing in the future. This news caused a decline in Alphabet’s shares. However, it may not be easy for Samsung to make this change, particularly in the US market. Twitter user Blamchavbak ahyakajayakpath brought up an important point about the mobile application distribution agreement that all Android users must sign, which pertains to the use of Google Play Store and other Google apps. Smartphone manufacturers who want to use these apps must sign the agreement.
As per the mobile application distribution agreement that Android users must sign, smartphone manufacturers with Android operating systems are required to have Google search as the default search engine on their phones. Therefore, if Samsung wishes to keep the Google Play Store on its phones, it must make Google the default search engine and cannot replace it with Microsoft Wing or any other search engine.
How can the whole story be reversed?
In summary, the mobile application distribution agreement requires smartphone manufacturers with Android operating systems to have Google Search as the default search engine if they want to use Google Play Store or other Google apps. However, this agreement is not applicable in all countries. In Europe, Google was fined for violating competition laws and forced to make Google Apps, Play Store, and Google Search/Chrome the default search engine or browser. In India, Google agreed to only preinstall Google Play Store and allow users to set the default browser of their choice. In countries where the agreement is different from Google’s version, it may be risky for Google, and smartphone manufacturers may be able to set Microsoft Wing or any other search engine as the default search engine. Therefore, the story of Samsung potentially removing Google as the default search engine on its phones is not a simple issue and depends on various factors such as regional laws and agreements.