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Works on my 2.1 HTC Hero. It surprised me, didn't think it would be so simple. I'm a bit concerned over the privacy and security implications of this feature though. How is it guaranteed that only Google can trigger app installations? What else can Google trigger on my phone?

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They can trigger remote uninstallations as well. I can't find a link, but when the apps which were sending private data to some server in China were discovered about 6 months back, Google remotely uninstalled the app from users' phones. It's my least favourite feature of Android.

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