Samsung Electronics decided to apply its original OS Tizen against Google (Android) and Apple (iOS), to all Samsung home appliances. In response to Google and Apple's two-frontrunner system, which divides the smartphone OS market, Samsung is aiming for a new approach to "OS supply through home appliances."
Samsung Electronics is planning to apply the Tizen OS to all small-sized products such as lighting, thermometers and scales apart from major home appliances. "The Tizen will connect and control all devices in a home," said Lee Hyo-keun, vice president of Samsung Electronics.
A role was also played by the judgment that maintaining an independent OS would be more cost-effective in terms of the entire business’ synergies and costs. "If we do not have the Tizen, we have to pay a lot of royalties to other OS developers such as Google every time we develop a home appliance," a Samsung official said. "Considering this aspect, it's much better to run our own operating system."
Moreover, analysis says that Europe's anti-Google sentiments helped the Tizen strike root in Europe. "It is true that the Tizen is experiencing difficulties in expanding its market share," an industry observer said. "It can be a game changer if Samsung Electronics approaches Europe via a new strategy of "OS distribution through Europe's anti-Google sentiment and home appliances."
In fact, Europe has had strong anti-Google sentiments to an extent that the new phrase "Google tax" was coined. In fact, there is strong demand for new competitors able to compete with Google, a virtual monopoly.
Recently, the EU imposed a fine of a record-high 2.24 billion euros on the global search giant, saying that Google manipulated search results by abusing its market-dominating position in a violation of the Antitrust Act.
Earlier in 2015, in order to prevent multinational companies from dodging tax, the UK legally established the Google Tax System that forces a multinational company to pay 25% of transferred profits in tax if the company transfers profits which the company made in the UK to other countries. This compelled Google to pay £ 130 million in tax to the UK.
In the meantime, vice chairman Kwon Oh-hyun of Samsung Electronics visited Europe last month to meet with leaders of the EU and proposed an integrated OS for the EU against Google and Apple. That was interpreted as a gambit to challenge Google and Apple. Believing that taking a bypass (supplying the OS through home appliances) will make Samsung’s chances good, vice chairman Kwon laid the foundation by meeting with the leaders in the beginning of the project.
Vice chairman Kwon met with German chancellor Angela Merkel and French President Emmanuel Macron one after the other. "We are considering an integrated OS for the EU," vice chairman Kwon said, gathering the opinions of the two leaders. Vice chairman Kwon reportedly explained a new OS ecosystem using the internet of things (IoT) for household appliances and TV in addition to PCs and smartphones.
"Vice chairman Kwon received a positive response from each leader," a well-informed source said. “In particular, I heard that Macron who served as minister of economy and industry achieved a strong consensus with the vice chairman.”
It is not confirmed whether vice chairman Kwon met with officials of Europe's finished product manufacturers besides each of the leaders. However, this visit to Europe is interpreted as a stepping stone to arrive at a consensus at the beginning of the project and receive policy and institutional support by meeting European leaders with anti-Google (Android) sentiments.