Google Paid Apple $20B to Secure Safari's Default Search?
In 2022, Alphabet, Google's Parent Company handed over a whopping $20 billion to Apple to secure its spot as the default search engine on Safari for iPhones, iPads, and Macs. This hefty sum came to light during its legal tussle with the United States Department of Justice over antitrust issues, as reported by Bloomberg.
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The case against Google alleges that it's been monopolizing the search engine and online advertising realm, with the Apple deal being a major piece of evidence. Since way back in 2002, It has been forking out big bucks to be the automatic search engine on Apple gadgets, and this arrangement has been revised several times over. The recent payment of $20 billion, which translates to around Rs 2,000 crore, underscores the gravity of this financial tie-up.
The bond between Apple and Google is a crucial one for the latter, securing its place as the go-to search engine on America's favorite smartphone. This deal is a win-win: Google maintains its search engine dominance, while Apple gets a significant chunk of its earnings—17.5% in 2020, according to court papers.
But not everyone's thrilled about this arrangement. Microsoft's CEO, Satya Nadella, even testified in court, arguing that the Google-Apple pact hampers competition. Microsoft had tried to sway Apple towards using Bing by offering a hefty revenue share, but Apple stuck with Google, citing its superior service. According to Nadella, when Apple picks a default search engine, it's a game-changer.
Despite the gripes, most Apple users around the world still find Google as their default search engine, although they do have options to switch to alternatives like Yahoo, Bing, DuckDuckGo, and Ecosia. In Europe, there's now a rule in place that requires Apple to give users more choices when setting up their devices.
This legal battle between Google and the DoJ is a big deal, with potential repercussions for the search engine and online ad industries. Closing arguments are happening soon, and a verdict is expected later in the year. If Google loses, it could mean the end of its deal with Apple, shaking up the tech world as we know it.
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