Google Pays Apple Up to $20 Billion Annually to Keep Its Search Engine as the Default on iOS
The agreement between tech giants Apple and Google, where Google serves as the default search engine on iOS devices, has long been known to the public. However, the precise figures of this deal have remained a well-guarded secret. In a new report by Bernstein analysts, it is revealed that Google is now paying Apple between $18 billion and $20 billion annually, which is double the previous estimates.
The report by Bernstein analysts points to a significant increase in the financial relationship between Apple and Google. While it was previously believed that the payments amounted to around $10 billion per year, this figure has now doubled. Particular attention is given to the ongoing antitrust lawsuit against Google by the U.S. government. The U.S. Department of Justice is investigating the agreement between the two tech giants as potential evidence of Google’s monopolistic position in the search engine market.
According to the report, Apple receives 14% to 16% of its annual operating profit from this agreement. Google allocates 22% of its total advertising revenues to traffic acquisition, with about 40% of that sum going to Apple. A key point in the report is that if the court’s decision goes against Google, Apple might explore alternative scenarios, including launching its own search engine.
It’s worth noting that there were recent reports suggesting that Microsoft considered selling its Bing search engine to Apple. If this deal had gone through successfully, it could have altered Google’s current position as the default search engine on Apple devices.
The long-standing collaboration between Apple and Google may be at risk in the event of an unfavorable court decision. The final decision in this case is expected next year, and there is a possibility that the legal process could be protracted due to appeals.
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- I'm Martin Harris, a tech writer with extensive experience, contributing to global publications. Trained in Computer Science, I merged my technical know-how with writing, becoming a technology journalist. I've covered diverse topics like AI and consumer electronics, contributing to top tech platforms. I participate in tech events for knowledge updating. Besides writing, I enjoy reading, photography, and aim to clarify technology's complexities to readers.
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