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Google originally gave carriers 25 percent because it was a very different time.

Says Chu, the original Android app store boss:

Back then, many of the major carriers had their own stores. They get to promote, and they also make money off of the store — of their store, I should say. And so this is to try to give them an alternative that allowed them to monetize even with Android Market — to convince them to adopt a new market.

The carriers would compete with Android Market?

“That was part of the design. It has always ben an intention, as part of Android, to enable other stores” and other ways to download apps, he testified.