Google pays Apple billions of dollars a year to run its search engine in Safari on Macs, iPads and iPhones. We’ve known this for a long time. So how many billions of dollars did Google pay, what conditions are attached to this money, and what happens if the money is lost?
These are questions frequently asked in the United States. Google settled the case and most of the issues in court.
Multi-Billion Dollar Google-Apple Partnership
A report from the New York Times gives a specific number, Google is said to have paid Apple “up to $18 billion” in 2021. During the hearing we heard the following, It can go from 10 billion dollars to 20 billion dollars, So this number is not entirely shocking. But this is the end of hope.
Not only was this money given to Google’s primacy over Apple devices, but it also historically prevented Apple from building its own search engine.
John Giannandrea, a former Google executive who now heads machine learning and artificial intelligence at Apple, stated during the hearing that Apple had its eye on everything from buying Bing to building its own search engine, but was wary of competing with Google and losing its deal.
When Microsoft CEO Satya Nadella stated, he gave another reason why Apple should keep its promise to Google, the potential for trouble if Google disappears.
Google could use top apps like Gmail, Maps, and YouTube to support Chrome and Google apps, which could draw attention away from Safari and potentially impact the value of Apple’s deal with other search engines. In this sense, the Google / Apple deal is not only beneficial, it can also feel like a compromise.
Google’s Competitive Strategy in Response to Apple
According to a report, Nadella was right. In recent years, threatened by improvements to Apple’s built-in Spotlight feature, Google has apparently tried to undermine Spotlight by creating a similar feature in Chrome that “presented users with quick facts and information from files, messages and apps on the device.” To get more people to switch to Chrome.
The details and effects of the Apple-Google agreement have become the focus of the US v. Google case. The Justice Department argued that this constituted anti-confiscation.
Competitive behavior testifying on witness statements that any search engine that can capture Apple’s market share will become a powerful player (Nadella stated that Apple can effectively “king-make” with its choice of defaults and that he was willing to lose as much as $15 billion a year to get Bing in that spot.)
Google is scheduled to begin part of the trial on Thursday, and the company’s lawyers are expected to present their case in the coming weeks. So far, Google has been successful not because it offers competitors, but because it is the best search engine. Google argues that people are flexible, but it apparently pays $18 billion a year in the hope that people won’t be flexible.
Google reportedly paid Apple up to $18 billion. This financial arrangement secures Google’s search engine as the default on Apple devices and deters Apple from developing its own. The potential loss of Google’s support poses challenges for Apple.
The outcome of this legal battle will determine the future of their strategic collaboration. Google’s substantial payments reflect its commitment to maintaining its dominant position in the search engine market.