Google estimated to pay Apple up to $20bn a year for feature everyone uses
A new report claims that Google could be paying Apple up to $20bn every year to make its search engine the default on their devices.
Google’ssearch dominance is undeniable, while competitors likeBinghave cropped up as viable alternatives to the giant, the company also pays out of pocket to certain companies to make its search engine more prominent than its rivals.
One such deal is Google’s deal withApple, where the company was revealed to pay vast sums to make its search engine the default on its devices such asiPhones,iPadsand Mac. A new report fromThe Registerdetails how analyst Bernstein now claims that this deal could now be worth up to $18-20bn USD in annual payments.
The report states: “We estimate that the ISA is worth $18B-20B in annual payments from Google to Apple, accounting for 14-16 percent of Apple’s annual operating profits.”
But, this landmark deal between the two tech titans could also come tumbling down.
Google’s deal with Apple is in danger
A Department of Justice antitrust case against Googleclaimsthat the arrangement is illegal and that it makes competition with other search engines impossible, as reported by Bloomberg in 2022. The case claims that the amount of money that Google sends to Apple will hope to deter the Cupertino-based iPhone makers from creating an alternative search engine of their own.
Should Google lose the antitrust case, it’s likely that Apple would first offer multiple search engine defaults across its devices. Other theories suggest that the company would seek to create its own rival to Google itself.
Traffic to Google is valuable and is the backbone of the company. It’s how they sell ads to the highest bidder on certain search terms. Considering the company’s wide integrations with other features and technologies, a true competitor to Google’s dominance hasn’t yet emerged.
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