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Sean Hollister

Sean Hollister

Senior Editor

Senior Editor

    More From Sean Hollister

    Sean Hollister
    Sean Hollister
    Google’s payments to Motorola / Lenovo didn’t wholly prevent it from preloading competing apps.

    Motorola’s Christensen has testified that Motorola is the one that chooses to enter into a Mobile Incentive Agreement (MIA) with each new device, and it can apply for an exemption if it really wanted to preload another app.

    “Even if it didn’t get the exemption, Motorola could still enter into the preload deal, that would just reduce the percentage of devices in the MIA portfolio, right?” asks a lawyer.

    “That’s a fair way to say it,” replies Christensen. (So Lenovo is simply getting paid less for fewer devices in compliance, I believe I’m hearing.)

    We are done with testimony for the day but listening to the judge talking to both lawyers about what’s coming next.

    Sean Hollister
    Sean Hollister
    Motorola had its own reasons for only preloading the Google Play store, though.

    Christensen has been asked about the company’s “Pure Android strategy,” where the company tends to put more of a stock Android / Google experience on its phones rather than reinventing the wheel by creating its own apps.

    “The primary benefit had been for us to differentiate ourselves compared to the likes of Samsung, for example,” he says.

    Later, he was asked if Motorola had any non-contractual reasons to avoid preloading another store. “The most common reason that exists is because of redundancy for consumers,” he says. Obviously Motorola can’t pre-load the iOS App Store, and “most stores available as a third-party store are more limited,” he says.

    “So we think it’s in the consumer’s best interests to have one.” Google Play is that one.

    Sean Hollister
    Sean Hollister
    An internal Lenovo / Motorola document shows the company gets paid millions when it complies with Google.

    A document titled “Impact of non-compliance” lists different payments for different percentages of Motorola phones that comply with Google’s rules under its Mobile Incentive Agreement (MIA), ranging from hundreds of thousands of dollars to multiple millions.

    In 2020, if over 95 percent of Motorola devices were compliant, parent Lenovo would receive $5.3 million, Christensen explained.

    For 2021, the amount was $6 million.

    One of the requirements for compliance (bolding mine):

    We are prohibited from:

    Pre-loading our own or third-party apps that are similar to theirs including: wallets, payment apps, browsers, search providers, other assistants like Alexa, or apps that download other apps such as Digital Turbine or another app store

    This may be a good find for Epic, because it appears to be a direct payment — not a complicated deal that involves co-marketing or revenue share. Even though it’s similar to what Google requires with its RSAs, it looks more like Epic’s argument that Google pays some companies not to compete. Not every OEM had an MIA — the Department of Justice alleged that LG and Motorola were the ones.

    Sean Hollister
    Sean Hollister
    Motorola says it went all in on Android because it was “struggling financially.”

    Christensen says he doesn’t think Motorola would still be in phones if not for Android because the company was struggling financially after attempting to support multiple operating systems simultaneously, including Symbian and Microsoft (presumably Windows Mobile).

    “To consolidate our engineering efforts into fewer OS solutions was definitely the priority at the time,” he says.

    Earlier: “I don’t think we’re able to license iOS from Apple, so Android is what we end up shipping.”

    Sean Hollister
    Sean Hollister
    Epic v. Google is back with Motorola — specifically Eric Christensen.

    His LinkedIn lists him as “Executive Director, Software Product Management and Partner Management,” but that’s a recent title. Back in 2008, he would have been “Director, North America Software Planning and Systems Engineering, Mobile Devices,” and thus been there for the beginning of Motorola’s relationship with Android.

    (Motorola arguably produced the first breakout hit Android phones with the Motorola Droid line. The first Android phone was an HTC device, the HTC Dream, which was branded as the carrier-exclusive T-Mobile G1 in the United States.)

    He says he was responsible for the revenue sharing agreements between Motorola and Google, in a taped deposition we’re watching from July 2022 — and they were initially about a share of Google’s search revenue, he says. Google has tried to suggest that its search revenue share (with Apple, anyhow) isn’t relevant to this Android case.

    Sean Hollister
    Sean Hollister
    “Sir, you’re not suggesting to this jury because Google had a pro-competitive vision in 2008, what Google did in 2018 is pro competitive, are you?”

    “No, I couldn’t be making that statement,” says Miner.

    And with that, Miner’s purpose in the courtroom for Google has largely ended? Google asked one last question — Miner said he believes Android would have been confusing if there wasn’t “a single place for people to publish their apps.”

    He has stepped down from the witness stand, and we’re on break.

    Sean Hollister
    Sean Hollister
    Epic’s turn with Android’s co-founder.

    Epic attorney Yonatan Even began by throwing Miner’s words back at him from 15 years ago — back when he told a Harvard University audience that he believed “monopolistic control” was “not necessarily a good thing” and that Android wanted “even playing fields.”

    “If we don’t excel, shame on us, what we don’t like is when someone else has a competitive advantage,” he said.

    You may be able to find the video right here — the place and year match up, but I can’t seem to download it on courtroom Wi-Fi to be absolutely sure.

    In an old deposition, Miner said under oath that he “maybe” thought the intent was that a level playing field should apply to Google Play when other developers build app stores, too.

    Sean Hollister
    Sean Hollister
    Android’s Miner says he was part of the problem.

    Android co-founder Rich Miner says he helped cellular carrier Orange build a walled garden of apps. That’s where he worked before he joined the original Android team, and he said it led to user confusion about where to go for apps.

    But carriers “eventually realized and heard us when we talked about the ability to have one place worldwide that was collecting apps and would have the ability to distribute on their network,” he says.

    Sean Hollister
    Sean Hollister
    In case you’re wondering why an Android co-founder is here:

    Google has been trying to explain from the beginning that the Play Store’s fee is the primary way Google gets paid back for its $40 billion investment in Android over the years. (It also gets advertising revenue, of course.) It also wants credit for opening up the app market from the tight grasp of cellular carriers.

    We were supposed to hear from Andy Rubin, the embattled “father of Android,” but we haven’t had any sign that his taped deposition will wind up getting played in court.

    Right now, he’s just saying some things about why the early team wanted Android to be designed as an open platform and explaining how hard it was to get an app onto Verizon’s app platform back in the day.

    Sean Hollister
    Sean Hollister
    “We were half a dozen hackers, a couple dogs in the garage model of a startup at that point.”

    Rich Miner on the early days of Android, pre-Google acquisition. I’ll have to check whether that’s the founding story or the founding myth, as some of the Valley’s famous garage startup stories aren’t quite accurate.

    “Phones and mobile networks were boring, the internet was all the rage” was the idea, and Android started talking to Google just in hopes of an endorsement, he said.