Google pays $ 7.2 billion a year to pre-install its apps

In recent months we have told you more about the enormous amounts that Google pays to pre-install its applications on smartphones. Both companies like Apple and others like Samsung. Both receive huge amounts. Now it is revealed that the figure that the American company spends 19, 000 million dollars a year in “acquisition of traffic”.

Google pays $ 7.2 billion a year to pre-install its apps

Within this gigantic amount, there are 7, 200 million dollars directed to mobile products. In other words, aimed at installing Google applications on smartphones. Make it the default search system, applications such as YouTube or Duo or Google advertising. All this comes at a cost, which we have now been able to learn about.

A Samsung Electronics Co. Galaxy S III smartphone shows the Google Inc. home page at a launch event in Seoul, South Korea, on Monday, June 25, 2012. Samsung, the world's largest handset maker, said the Galaxy S III will help mobile earnings surpass the first-quarter record, after users responded more positively to the latest smartphone model. Photographer: SeongJoon Cho / Bloomberg via Getty Images

Google invests to stay leader

These astronomical costs are the price that the company has to pay as the market leader. If you want to maintain your position as the undisputed leader, you have to invest. In this way, the company ensures that it is in a privileged position. In addition, this saves you having to install a web browser or a mapping application, since everything is integrated.

The main problem that Google faces is that this cost is increasing every year. Although its market strategy depends on staying as a leader. But, these practices are costing you fines at the European level when accused of monopoly. So everything indicates that it is a model that in the long term may not be sustainable.

The fines and court proceedings Google faces as a result of these practices may take effect. Because an increase in cost of 50% in the last five years is undoubtedly excessive. Although surely the company will do everything possible to maintain itself as the undisputed leader.