Google allegedly pays Apple billions to keep out of search engine business

Share This Post

According to a lawsuit, Google pays Apple ‘billions’ per year not to build its own search engine. In accordance with an agreement with Google, Apple will not develop its own internet search engine. An allegation in a class action lawsuit is that Google is required to pay the company so long as it remains the default option in Safari. Class-action lawsuits in the United States have revealed details of the deal, which has been hailed as illegal and contrary to antitrust laws. As a result of the agreement, Google will be part of the Apple ecosystem. Apple’s Safari browser also uses Google’s search engine by default rather than its own. A company of Apple’s scale could easily build a similar search engine out of scratch. 

Apple CEO Tim Cook and Google CEO Sundar Pichai allegedly met on a regular basis and discussed how Google could share its profits with Apple in exchange for preferential treatment on devices such as the iPhone and iPad, according to the complaint. Google is paying Apple around $8-12 billion per year for allowing the search engine to serve as its default search engine on its devices, according to The New York Times. Google may have spent $15 billion in 2021 on keeping the status quo, according to one analyst. Furthermore, the UK Competition and Markets Authority described the arrangement as a “significant barrier to entry and expansion in the search engine market” and asked enforcement authorities to explore options to correct the situation between Apple and Google so that other search engines are free to compete.

Apple devices are just too prevalent in the world. Google generates an enormous amount of traffic by making it the default search engine on those devices. Google gets nearly half of its search traffic from Apple devices, according to a report by The New York Times. By 2020, Google is expected to generate $104 billion in search advertising revenue. 71% of Google’s total advertising revenue was derived from this, while 57% of Alphabet’s revenue came from this. Through Apple devices, these ads are delivered to the right people. Thus, it makes perfect sense for Google to pay this kind of sum to one of its rivals.

Also Read:  Google contractor claims he was fired for reporting cult activity


Please enter your comment!
Please enter your name here

Stories You May Like

Related Posts

Meet WriteXai: The Best Jasper AI Alternative To Try In 2023

The digital world is getting more advanced day by...

ChatGPT can now access the internet with new OpenAI plugins

OpenAI is actively testing various plugins that, if implemented,...

ChatGPT creates a new high paying job: Prompt writing! What is it?

Do you still believe AI is eating jobs? Think...

All about iPhone 15: rumors, release date, price, specs

The iPhone 15 is capped to bring some significant...

ChatGPT: A Potential Tool for Early Detection of Alzheimer’s Disease

Chatbots powered by artificial intelligence (AI) are quickly gaining...
- Advertisement -