For just a year, Google reportedly pays $18 billion to stay iPhone’s default search engine،
Google finds itself in the hot seat amid an ongoing antitrust lawsuit, a pivotal moment for the future of Google Search. The Justice Department says the tech giant, in its quest for a dominant 90% share of the search market, funneled substantial sums of money. A recent report sheds light on the exact scale of this financial exchange. It has become clear that Google allocates billions every year to Apple, ensuring its status as the default search engine on Apple devices. According to The New York Times report, this figure amounts to approximately $18 billion per year. This payment secures Google’s position as the default search engine on iPhone, iPad and Mac.
Although this information is for 2021, it should be noted that the current sum could well exceed this reported amount. In 2021, there was speculation that Google would pay Apple $15 billion for the iPhone’s default search engine status. However, the reality seems to exceed these estimates.
This financial arrangement proves to be mutually beneficial, as it represents a substantial profit for Apple. On the other hand, this dissuades Apple from developing its own search engine or acquiring one – an option revealed during the trial. Apparently, Google blocked Apple from buying Bing, as the court revealed.
The dynamics of the Google/Apple agreement take on the appearance of a peace treaty, as suggested The edge. Microsoft CEO Satya Nadella offered in testimony one more reason for Apple to maintain its pact with Google. He highlighted the potential repercussions if Google was left out of the equation.
Nadella argued that Google could leverage its widely used apps such as Gmail, Maps and YouTube to promote Chrome and the Google app, potentially drawing users away from Safari. Such a move could hurt the value of any alternative search engine offerings Apple might explore.
As Google enters the trial arena, its legal team says the company’s success lies in having the best search engine rather than eliminating competition. However, the substantial annual investment of $18 billion suggests a strategic move aimed at retaining users, despite Google’s claim that switching search engines is simple.
