Google paid Apple $26.3b to be default search engine in Safari in 2021, it was just $20b in 2022
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Key notes
- Google’s payments to Apple for default search engine on Safari dropped from $26.3 billion in 2021 to $20 billion in 2022.
- DOJ argues these deals give Google unfair monopoly power in search.
- Court documents reveal Apple received significant income (17.5% in 2020) from Google’s search ad revenue sharing.
New court documents filed in the ongoing antitrust lawsuit against Google reveal a decline in Google’s payments to Apple for keeping it the default search engine on Safari. In 2022, Google paid Apple $20 billion for this privilege, down from $26.3 billion in 2021.
This information is important because the Department of Justice (DOJ) argues that Google maintains a search monopoly through deals with tech giants like Apple.
The documents also show the financial importance of this deal for Apple. At one point, Google’s payments accounted for a whopping 17.5% of Apple’s operating income. Imagine getting that bunch of money from your study rival.
Previously, both companies attempted to keep the exact payment figures confidential. But during the trial, Apple representatives vaguely mentioned “billions” without specifics. A Google witness unintentionally revealed that Google shared 36% of its search ad revenue with Apple, revealing at the massive sum involved.
The court filings further disclose that Microsoft, Google’s search engine rival with Bing pursued Apple to switch teams. Microsoft offered a 90% revenue share from search ads, along with concessions like hiding the Bing brand itself.
With closing arguments in the antitrust case scheduled for this week, the future of such deals remains uncertain. The court’s decision will likely determine if Google’s practices violate antitrust laws and how search engine dominance is addressed in the tech landscape.
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