The two security features Google Play provides beyond web-installed APKs are the malware scanner that runs during app submission, and the ability to quickly delist apps that are discovered to be bad. Both could be opened up to all software sources rather easily.
In our estimates, Google makes vastly more money from Google Search monetization than the cost of developing Android.
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Google annual revenue is over a hundred billion dollars, which exceeds the GDP of two-thirds of the world’s countries. That’s roughly 5 million dollars in revenue per Google employee. So, Google will do just fine without a monopoly on Android software distribution.
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