Under the terms of the agreement, Google will still have to pay a total of 439 million roubles ($7.85 million) in fines.
The deal with Russian Federation s anti-monopoly service (FAS) came after Yandex, the country s biggest search engine, complained Google had an unfair advantage by pre-loading its search engine on Android phones.
Russia's Federal Antimonopoly Service said this counted as an abuse of Google's dominant market position, and for the past two years, it's been investigating and suing over the company's restrictive terms. The company also can't restrict competing search engines and applications from being preinstalled on Android devices.
As part of the agreement, Google will develop a tool that allows users to choose a default search engine on Android devices - no longer demanding exclusivity for its applications, according to the FAS Web site.
Google on Monday agreed to pay a almost $8 million fine and open its Android mobiles to competing search engines in Russian Federation in an antitrust settlement reached after two years. Google did not agree with the ruling and appealed to the court.
Shares in Google's local Russian rival, Yandex, rose more than 7% on the news. Google noted it continues to work with FAS on technical execution of their orders.
For the devices that are now circulating on the Russian market, Google will develop an active "choice window" for the Chrome browser which at the time of the next update will provide the user with the opportunity to choose their default search engine.
In a few months, Google will create for new devices in Russian Federation a new Chrome widget that will replace the current Google search widget on the home screen. The addition of a choice window provides users with the opportunity to choose their default search engine.
"The settlement will have a positive effect on the market as a whole", FAS head Igor Artemiev said.
A Russian court approved the settlement agreement on Monday.