SAN FRANCISCO, CALIFORNIA – Alphabet Inc. made a significant payment of $20 billion to Apple Inc. in 2022 to secure Google as the default search engine on the Safari browser, as revealed in recently unsealed court documents from the Justice Department’s antitrust lawsuit against Google.
The ongoing case centers around allegations that Google has unlawfully monopolized the online search market and related advertising. This landmark case is reaching its conclusion, with closing arguments expected from both the Justice Department and Google in the coming days, leading up to a decision later this year.
The precise amount of the payment between Google and Apple had been kept confidential, but was now disclosed in court documents. Apple’s senior vice president of services, Eddy Cue, confirmed that Google pays a substantial amount to Apple, with the payments making up a significant portion of the tech giant’s operating income.
The partnership between Google and Apple dates back to 2002 when Google was first integrated into the Safari browser for free. Over time, the companies agreed to share revenue from search advertising, resulting in Google paying Apple over $1 billion a month by May 2021 for the default search status on Safari.
Microsoft, Google’s competitor in the search engine market, attempted to sway Apple away from its partnership with Google by offering generous revenue sharing deals. Despite Microsoft’s efforts, Apple has remained loyal to Google, recognizing the strategic importance of the partnership in setting the default search engine for the most popular smartphone in the US.
Microsoft’s Chief Executive Officer, Satya Nadella, testified in court about the company’s efforts to persuade Apple to switch to Bing as the default search engine on Safari. Nadella emphasized the significance of Apple’s decision, stating that “whomever they choose, they king-make.”
As the trial progresses, more details are being revealed about the intricate relationships between tech giants like Google, Apple, and Microsoft, shedding light on the competitive landscape of the online search market. This case has far-reaching implications for the future of online search and advertising practices.