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Every Year, Google Pays Billions To Apple… What’s The Reason?



Every Year, Google Pays Billions To Apple... What's The Reason?

(CTN News) – According to the ongoing trial between the US government and Google, one of the key points of interest at the moment is how much Google pays Apple to be the default search engine on Apple’s devices.

It has recently been reported that has paid Apple around $18 billion as part of this privilege in 2021, according to a recent report from The New York Times.

Experts had predicted that this number would range between $10 billion and $20 billion, but this number is at the higher end of what experts thought.

As a result of this agreement between Google and Apple,

Not only will search engine be prominently featured on Apple devices, but it will also prevent Apple from attempting to build its own search engine.

Apple made it known during the trial that it was considering alternatives such as buying Bing or developing its own search engine in order to compete with Google.

There was, however, the concern that Apple would lose out on the lucrative contract and would be competing with them.

The testimony given by Microsoft CEO Satya Nadella during the trial added yet another layer of complexity to this deal.

In his view, Apple’s motivation to keep the Google deal may be linked to Google’s potential to lure Apple users away from Safari to Chrome and the Google app by using their popular services such as Gmail, Maps, and YouTube to lure them away from Safari and Chrome.

As a result, any deal Apple would have with any other search engine could be potentially reduced in value. It is for this reason that Google-Apple’s partnership is seen as mutually beneficial and perhaps in some ways similar to a peace treaty.

During the course of the trial, the US Department of Justice is arguing that the Google-Apple deal creates an unfair monopoly, which is contrary to the law.

It has been mentioned in witness testimony that any search engine that gains access to Apple’s massive user base will become an instant player in the search market as soon as it gains access to Apple’s user base.

During the trial, Google is going to make the case that its success is due to its ability to offer the best search engine, which is what makes it stand out from its competitors.

Despite the fact that Google argues that users can easily switch to another search engine, it pays Apple billions of dollars each year to keep its default search engine status in the hopes that users won’t switch.

A successful outcome of the trial could have a significant impact on the tech industry and the competition within it in the future.


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