Google could pay Apple nearly $15 billion this year to remain the default search engine on iOS

guest · Aug 26, 2021

Google could pay Apple nearly $15 billion this year to remain the default search engine on iOS
The growing payments may raise a few eyebrows among antitrust regulators
August 26, 2021
https://www.techspot.com/news/90962-google-could-pay-apple-nearly-15-billion-year.html

Why it matters: One of the reasons Apple is making so much money in the Services segment is a billion-dollar deal with Google that keeps on giving, year after year. It's estimated the latter will pay around $15 billion this year for the privilege of having its search engine remain the default option across the entire Apple ecosystem, but most importantly, iPhones.

By now it's no secret that Google has been paying a hefty price to be the default search engine on Apple devices. Not only that, but regulators have long been worried about the billion-dollar agreement between the two tech giants as they were probing them for multiple potential antitrust violations.
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A new report from analysts at Bernstein reveals just how profitable this arrangement really is for Apple.
In 2020 Google's privilege cost the company $10 billion, and this sum is set to increase to $15 billion, which at first glance seems like a huge jump in a very short amount of time.

Interestingly, the analysts believe Google's payments to Apple could also increase in 2022 to anywhere between $18 and $20 billion, which is a testament to how valuable Apple's ecosystem is for search engine providers.
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Rasheed187 · Aug 28, 2021

This is crazy stuff. My advice to Vivaldi is to make a deal with Google as soon as possible. Even Mozilla is making $500 million a year because of Google. If Vivaldi can make at least $5 million, why not?

NormanF · Aug 28, 2021

Interesting question. If Google didn't pay up, would Apple create its own custom search engine?

Mrkvonic · Aug 28, 2021

No need to create a custom engine where there's competition.
Mrk

EASTER · Aug 28, 2021

Google has noooooo problem with that.

guest · Jan 5, 2022

Class action lawsuit may reveal how much Google pays Apple to be the default search engine
January 5, 2022

It’s an open secret that Google pays Apple a multibillion-dollar sum each year to be the default search engine on Apple devices. In other words, the search engine that is used when you simply type your search term into the combined address/search bar.

Neither company discloses the amount, leading to various estimates over the years. But a new class action lawsuit may reveal the actual sums …
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Add in the fact that Apple customers are a particularly valuable demographic, and you can see why Google would be willing to pay a great deal of money to maintain the status quo.

One of the more recent estimates of the sum was from Bernstein.

Bernstein analysts are estimating that Google’s payment to Apple will increase to $15 billion in 2021, and to between $18 billion and $20 billion in 2022. The data is based on “disclosures in Apple’s public filings as well as a bottom-up analysis of Google’s TAC (traffic acquisition costs) payments.”
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Default search engine class action lawsuit
A class action lawsuit has been filed, claiming that the arrangement is harmful both to competing search companies, and to businesses who place ads with Google. It further alleges that the agreement violates antitrust laws.
Discovery would likely reveal the amount paid
If the lawsuit proceeds as far as the discovery process, then that would likely lead to disclosure of the actual amounts paid to Apple.
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guest · Sep 10, 2022

Google pays billions to maintain search engine defaults, US DOJ says
By Kareem Anderson - September 9, 2022

According to a new report from Bloomberg, The US Department of Justice opened up its initial arguments in a suit against Google on Thursday that the search engine giant maintains its default status on products through illegal payments that total in the billions.

During the initial meeting, the DOJ spent much of the time claiming that through a series of financial agreements with companies such as Samsung and Apple, Google has effectively cut out any direct competition.
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According to DOJ attorney Kenneth Dintzer,

"Google invests billions in defaults, knowing people won't change them. They are buying default exclusivity because defaults matter a lot. Dintzer reiterates that Google's current business practice and position is "enormous" and "concerning"
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Bloomberg: Google Pays ‘Enormous’ Sums to Maintain Search-Engine Dominance, DOJ Says

DOJ suit alleges Google’s exclusive deals lock out rivals

Company says phone makers, browsers want its search engine

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By Leah Nylen @leah_nylen - September 8, 2022
Alphabet Inc.’s Google pays billions of dollars each year to Apple Inc., Samsung Electronics Co. and other telecom giants to illegally maintain its spot as the No. 1 search engine, the US Justice Department told a federal judge Thursday.

DOJ attorney Kenneth Dintzer didn’t disclose how much Google spends to be the default search engine on most browsers and all US mobile phones, but described the payments as “enormous numbers.”
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In his presentation, DOJ’s Dintzer focused on the mechanics of Google’s search engine and how its default contracts have hemmed in potential rivals. On mobile, Google contracts with Apple, smartphone makers like Samsung and Motorola Solutions Inc., most browsers and the three US telecom carriers -- AT&T Inc., Verizon Communications Inc. and T-Mobile US Inc. -- to ensure its search engine is set as the default and comes preinstalled on new phones, Dintzer said.

Google’s Schmidtlein said the company has contracted with Apple and browsers like Mozilla since the early 2000s. DOJ and the states haven’t explained why those deals are now problems, he said.

“The reason they partner with Google isn’t because they had to; it’s because they want to,” Schmidtlein said. The company “had extraordinary success and was doing something incredibly valuable. Competition on the merits is not unlawful.”
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Rasheed187 · Sep 10, 2022

mood said: ↑

Google pays billions to maintain search engine defaults, US DOJ says
By Kareem Anderson - September 9, 2022

Bloomberg: Google Pays ‘Enormous’ Sums to Maintain Search-Engine Dominance, DOJ Says
Click to expand...

Interesting stuff, I wonder what the outcome will be. Now that I think of it, it is indeed quite unfair against competing search engines. But I have to say that Google Search still is the best one when it comes to speed, search results and looks.

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