March 28, 2010 | by Andrew Kameka
Google has denied recent suggestions that it shares revenue with carriers who sell Android phones. Though Google does share money with carriers for mobile search advertising sales, the company denies it passes out any extra dollars for cellular providers who use its Android OS.
MocoNews previously reported that Google had a revenue sharing agreement that paid carriers if their phones included Google applications, with the incentive being to run Android. However, Google issued a statement pointing out that it has made deals with carriers long before Android came into the picture. “We share revenue on search, not on mobile applications,” a Google spokesperson said. “The same is true for non-Android devices that use Google as the default search engine.”
Google, like Microsoft and Yahoo!, pays carriers money to serve as the default search engine on their phones. While mobile search doesn’t yet rake in the dough, it represents an industry that analysts believe will skyrocket as smartphones become more affordable and appealing. Companies want to maintain an advantage and grow their business, which is why they entice carriers with deals to become the default search. That’s why Yahoo! managed to get onto AT&T’s Backflip even though it’s an Android phone.