Google Revealed to Be Paying Apple Billions of Dollars for Search Engine Dominance

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ICARO Media Group
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03/05/2024 20h12

In a blockbuster antitrust lawsuit against Google, it has come to light that the tech giant pays Apple billions of dollars each year for the privilege of being the primary search engine on Apple's Safari browser. Newly unsealed figures from the case indicate that by May 2021, Google was paying Apple over $1 billion per month, amounting to as much as $20 billion in total for the year 2022.

These staggering numbers highlight the enormous stakes of the antitrust lawsuit, which could potentially revolutionize how millions of Americans search for information online and reshape the battle for dominance in artificial intelligence. The US government alleges that Google illegally monopolized the online search industry through contracts that made its search engine the default choice on millions of devices and browsers worldwide.

The antitrust case, initiated during the Trump administration, is now nearing its closing stages. The Justice Department has launched its final assault on Google's search engine dominance, seeking to persuade a federal judge that Google's payments to Apple and other entities have enabled the company to maintain an unassailable search business. The trial, which lasted 10 weeks last fall, included arguments from Microsoft, which claimed that Google's access to vast amounts of search data allows it to gain an advantage in artificial intelligence.

Google, on the other hand, argues that consumers choose its search engine simply because it is the best, denying any anticompetitive behavior. The company also asserts that its search engine supports its Android operating system, a competitor to Apple. Google contends that nothing prevented Apple from selecting a different default search partner.

Throughout the trial, District Judge Amit Mehta has remained ambiguous about his ruling. He stated at the end of the trial in November that he was undecided, and during the closing arguments, he posed tough questions to representatives from both sides. Mehta highlighted the challenging task of unseating Google as the default search engine, emphasizing the investment required to compete with Google's contracts with Apple and others.

If Mehta sides with the US government, it would trigger a separate proceeding to determine the penalties that Google may face. The outcome of this landmark case could have far-reaching effects on the tech industry, serving as a precedent for other antitrust cases involving major tech companies.

The decision from District Judge Amit Mehta is expected to be issued later this year, following the conclusion of the closing arguments.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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