Google will reportedly charge hardware firms up to $40 per device to use its apps under a new licensing system that the company announced earlier this week, in order to comply with the European Union's competition laws.

The new fee goes into effect on Oct. 29 for any new smartphone or tablet models launched in the European Economic Area and running Google's Android operating system, the company announced on Tuesday.

The fee can be as low as $2.50 and rises depending on the country and device size, Reuters reported on Friday, citing an unnamed source. It is standard across manufacturers, with the majority likely to pay around $20, the report added.

Of course, companies cannot pass this fee to the consumers. They could offset the charge, which applies to a suite of apps including the Google Play app store, Gmail and Google Maps, by agreeing to bundle Google's search and Chrome internet browser. Under that arrangement, Google would give the device maker a portion of ad revenue it generates through search and Chrome.

The European Commission in July found Google abused its market dominance in mobile software to essentially force Android partners to pre-install search and Chrome on their gadgets. It levied a record $5-billion fine, which Google has appealed.