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Why Google is wary of Samsung's growing power

Samsung's dominance in the smart-phone market has raised some questions about whether it will renegotiation the terms of its arrangements with Google, hurting the search-engine company's mobile-ad business.

Google is concerned with how Samsung's growing power might affect their partnership. Here, a man walks by a Samsung advertisement in Seoul, South Korea.

Kim Hong-Ji/Reuters/File

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Samsung's success may have Google worried.

Executives at the search-engine giant are concerned about Samsung's rising dominance in the Android market, according to The Wall Street Journal. The South Korean company’s success could lead to a renegotiation of its arrangement with Google or otherwise undermine its mobile-ad business.

Google may be trying to save itself from an ascendant Samsung with its recent acquisition of Motorola Mobility, which makes Android-based smart phones and tablets, according to the Journal.

Samsung has risen to the top of the smart-phone market over the past year, reporting a $8.27 billion profit in its Q4 earnings of 2012. Galaxy products outsold iPhones for most of 2012, dominating the global market.


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