Google’s $20 Billion Deal with Apple for Default Search Engine Exposed in Antitrust Trial

https://www.gizmochina.com/2024/05/03/google-ap...

The US Department of Justice’s (DoJ) ongoing antitrust lawsuit against Google has uncovered something quite interesting: a $20 billion payment made by Google to Apple in 2022. This hefty sum allegedly secured Google’s position as the default search engine on Apple’s Safari browser across iPhones, iPads, and Macs.

Google and Apple have previously chosen to keep this information under wraps

The revelation comes from a recently released court document. Interestingly, Google and Apple have historically kept the terms of this agreement under wraps, despite renegotiating it multiple times since 2002, when Google first became the default search engine on Apple devices.

The DoJ’s relentless pursuit of transparency has finally yielded results. A lawsuit filed last year indicated that Google’s payments to Apple constituted 36% of Apple’s total Safari revenue, hinting at a significant figure. Now, the exact amount – a staggering $20 billion – is confirmed.

This deal has drawn criticism from competitors like Microsoft. Microsoft CEO Satya Nadella claims the agreement stifles competition for search engines like Bing. He even revealed that Microsoft previously attempted, unsuccessfully, to have Apple adopt Bing as the default.

Apple, however, defends its choice. In court testimony, Apple’s Eddy Cue expressed concerns about Bing’s ability to match Google in “quality and functionality.” According to Cue, Apple simply believes Google delivers the “best” search experience for its users.

The future of this agreement is now resting on the DoJ lawsuit. Closing arguments are set for later this week, with a final decision from the judge expected sometime in 2024. If Google loses the case, the deal with Apple could be nullified.