Google’s Payment to Apple for Default Search Engine to be Top News
In a surprising revelation from the recent federal antitrust case against Google, it was disclosed that Google pays Apple a staggering 36% of its search revenue from users who utilize the Safari browser. This payment is on top of the already substantial $18 billion annually that Google is paying Apple to remain the default search engine for Apple devices.
The disclosure of this figure caused a visible reaction from Google’s lawyer during the case, and Alphabet CEO Sundar Pichai confirmed the number in testimony for another antitrust lawsuit.
The fact that Google is willing to pay such a large cut to Apple while also facing an antitrust lawsuit over the 30% cut Google takes from in-app purchases through the Google Play Store is striking. Apple also takes a 30% cut from in-app purchases through its App Store.
Additionally, Google paid Apple $18 billion in 2021 just to be the default search engine on Apple devices. This indicates that Google is willing to make significant payments to maintain its position on Apple devices, even as it seeks to persuade iPhone users to switch to the Chrome app as their default search engine.
While Chrome is more popular than Safari, especially on desktop computers, Safari still comprises about 27% of browsers across all devices, including mobile phones. With Google’s total search revenue totaling nearly $279.8 billion in 2022, the 36% cut paid to Apple could amount to more than $20 billion for that year alone when considering Safari’s market share.
When also factoring in the $18 billion paid for Chrome to be the default browser on Apple devices, the total payments from Google to Apple are substantial and represent a significant portion of Apple’s yearly revenue.
In light of these revelations, it’s notable that Google has sought regulators to make iMessage compatible with Android, suggesting that the companies’ relationship is complex.