Picture: Rajesh Pandey/Cult of Mac
Google paid Apple $20 billion for Google to stay the default search engine throughout all Apple units. This determine got here to gentle by courtroom paperwork submitted within the US Justice Division’s lawsuit in opposition to Google.
Throughout the course of the listening to, Google and Apple tried their finest to not reveal the quantity publicly.
Apple prefers Google as a result of it’s the finest
An October 2023 report additionally estimated Apple receiving $18-$20 billion from Google in 2022. This time round, the paperwork reveal the precise determine of $20 billion, coming immediately from Apple’s SVP of companies, Eddy Cue.
The Bloomberg report particulars that in final fall’s trial, Apple stated Google paid them “billions” to be the default search engine. A Google witness later unintentionally testified that the corporate pays Apple 36% of the income from search advertisements.
Whereas it is important for Google to stay the default search engine on iPhone and Mac, the cash additionally performs an enormous position in Apple’s backside line. As per the doc, Google’s fee accounted for 17.5% of Apple’s income.
Nonetheless, as Eddy Cue testified through the listening to, Apple prefers Google not due to the billions of {dollars} it receives however as a result of it’s “the most effective.”
Throughout the trial final 12 months, Microsoft CEO Satya Nadella revealed that it was providing Apple a number of concessions to maneuver away from Google. These embody sharing 90% of the promoting income and hiding the Bing brand in Safari on iPhone. The swap would have been “recreation altering,” which is why Microsoft was keen to make these concessions.
Google’s take care of Apple may put it into hassle
Given the iPhone’s recognition within the US, it’s essential for Google to stay the default search engine on the units. This additionally explains why Google paid Apple greater than $1.5 billion month-to-month in 2022. However this transfer will now in all probability get the corporate into hassle.
If the US Justice Division wins its lawsuit in opposition to Google’s alleged monopoly in search and promoting, the latter might need to cancel its take care of Apple.
Google and the Justice Division will submit their closing arguments on Thursday and Friday. The courtroom’s closing resolution will arrive later this 12 months.