Google reportedly paid Apple a whopping $20 billion in 2022 to maintain its status as the default search engine on Safari, Apple’s web browser. This revelation surfaced from unredacted documents unveiled during the ongoing antitrust trial with the United States Department of Justice (DOJ), where Google faces allegations of monopolizing the search market.
The DOJ contends that Google’s substantial payments to Apple and other partners have contributed to its dominance in online search, commanding approximately 90% of the market share. The disclosure of the $20 billion payment underscores the high stakes involved in securing default status on Safari, a crucial battleground in the fiercely competitive tech landscape.
Apple executive Eddy Cue’s testimony, initially shielded from public view, revealed that Google pays “billions” to retain its position as Safari’s default search engine. This revelation, brought to light by Bloomberg, marks the first public acknowledgment of the colossal sums exchanged between the tech giants.
During the trial, a witness disclosed that Google pays Apple a substantial 36% share of search advertising revenue generated through Safari, further highlighting the financial intricacies of their partnership. Despite efforts to keep the details confidential, such revelations have exposed the inner workings of the Google-Apple agreement.
The trial’s conclusion looms large, with closing arguments expected imminently and a decision from Judge Amit Mehta anticipated later this year. Should the court rule against Google, the ramifications could be significant, potentially leading to the dissolution of the Apple-Google deal and reshaping the competitive landscape of online search.
As the trial unfolds, it underscores the complex dynamics of tech partnerships and the regulatory scrutiny surrounding market dominance. With billions at stake and the future of online search hanging in the balance, the outcome of this legal battle will reverberate throughout the tech industry for years to come.
