Google Revealed to Pay Apple 36% of Ad Revenue for Default Safari Search Engine Status
ICARO Media Group
In a surprising revelation during the ongoing Justice Department trial in Washington, it has been disclosed that Google pays Apple a staggering 36 percent of all ad revenue generated through searches made on Apple's Safari browser. The confidential information was brought to light by Kevin Murphy, an economics professor at the University of Chicago, during his testimony on behalf of Alphabet, Google's parent company.
This revelation sheds further light on the relationship between two of the world's largest tech giants, which has been facing increased scrutiny regarding antitrust concerns in recent years. The Department of Justice (DOJ) has accused Google of utilizing its vast resources to maintain market dominance by striking deals with companies like Apple, whose popular devices including the iPhone, iPad, and Mac have billions of users collectively. These deals ensure Google's position as the default search engine on Safari.
According to a report by The New York Times, in 2021 alone, Google paid Apple approximately $18 billion to secure its position as the default search engine on Safari. The DOJ trial seeks to investigate such practices to determine if they violate antitrust laws.
Interestingly, both Google and Apple objected to the public disclosure of the details surrounding their arrangement. In a court filing, Google expressed concerns that sharing more information would "unreasonably undermine Google's competitive standing in relation to both competitors and other counterparties." Last week, objections were raised by both companies, marking an attempt to keep the details of their mutually beneficial agreement private.
While the exact amount of ad revenue generated by Google through Safari remains unknown, it is reasonable to assume that 36 percent of this revenue would amount to tens of billions of dollars. In 2022, Google reported a total revenue of $279.8 billion, with the majority of it being attributed to advertising.
Despite these revelations, both Google and Apple have chosen not to respond to requests for comment from Engadget, leaving the public with more questions than answers regarding this lucrative business arrangement.
As the trial continues, the antitrust concerns surrounding Google and its dominant market position will undoubtedly be further examined, potentially leading to significant implications for the tech industry as a whole.