In a deal that could give Google and Amazon a head start on making their hardware and services cheaper, the companies have agreed to a $100 million cash payment in exchange for making the products available to other manufacturers and retailers.
The two companies, whose main rivals are Microsoft and Apple, agreed to the arrangement in January after the governments of India and China, along with Amazon, imposed new rules requiring online retailers to disclose their sales and margins.
That means that if a product is not available for sale in the local market, the two companies can negotiate a deal with another retailer to make it available.
“This is the first time we’ve ever made hardware available to consumers, and we think it’s the best way to drive prices down,” said Adam Jonas, Google’s senior vice president of hardware.
The companies have already made hardware that can be used to power tablets and smartphones, but the deal is meant to extend the reach of Google’s Android operating system and Amazon’s Kindle Fire tablets.
The deal comes as the companies fight to become more competitive.
In the last few years, Google has become the leading online retailer, beating out Amazon in some areas and Apple in others.
Google also has a more extensive hardware lineup than Amazon, and its own hardware division, Google Home.
It is also the only major tech company to offer Android devices, and Google has been working to improve its voice-controlled assistants.
Google is currently selling Android phones and tablets priced under $100, and it has already started selling its own tablet computers.