Google has reportedly spent a staggering $20 billion to guarantee its spot as the default search engine for Apple’s Safari browser on iOS and macOS devices in 2022. The hefty fee highlights the importance Google places on preserving its primary status on Apple devices and the intense competition in the tech arena, especially where search engines are concerned.
Details about this steep investment emerged amidst a U.S. Department of Justice antitrust lawsuit against Google. The tech behemoth allegedly shells out between eight to twelve billion dollars annually to keep its default position on Apple’s devices, in a deal that comprises a significant portion of Apple’s services revenue.
The suit argues that Google unfairly monopolizes the market by using its dominant online status to favor its own products and suppress competitors. If true, this could create a problematic imbalance in the digital market space.
Google’s hefty expenditure for Apple’s default status
The exact figures of Google’s payments to Apple remain undisclosed, but Apple executives have confirmed the total is in the billions.
Apple reportedly rakes in about 36% of Google’s online advertising revenue, shedding light on Google’s massive financial commitment to Apple. The hefty financial exchange highlights Google’s dependency on Apple devices to reach its users effectively.
The Apple-Google partnership started in 2002 and has seen mutual benefits, particularly enhanced search ad revenue. Despite consideration of Microsoft’s Bing as Safari’s default search engine and even rumors of Apple possibly acquiring Bing, the profitable alliance between Google and Apple stands firm. In the face of alternatives or even total control over its search capabilities, Apple continues to value the potential of its partnership with Google.
