For search in Safari: Google probably paid Apple 20 billion US dollars in 2022
Google's document to the US DOJ reveals the speculated billions paid to Apple, previously only rumored.
Google lettering on a white wall.
(Bild: testing/Shutterstock.com)
It has been known for some time that Google pays Apple billions for its prominent placement as the default search engine on the iPhone, iPad and Mac. But now, for the first time, there is official confirmation of the sum. It comes from a document that Google itself has submitted to the court as part of the ongoing antitrust action brought by the US Department of Justice due to its market dominance in the online advertising sector.
Billions already leaked - and the percentage share
As the financial news agency Bloomberg discovered, the paper now released by the court speaks of a sum of 20 billion US dollars in just one year – 2022. Google had hoped until the end that the sum would not become public, marking it as a trade secret.
However, Apple managers have already had to admit to the court that Google is paying "billions". A witness – from the Google side, of all places – then inadvertently dropped that Apple received a 36 percent share of Google's advertising revenue on Apple platforms. Today (Thursday) and tomorrow (Friday), Google and the lawyers for the US Department of Justice are due to make their closing arguments. A court decision is expected later this year.
Important part of the services business
Google has dominated Apple's search ecosystem from the outset, but has to involve Apple in return. The internet giant probably does its best business with iOS and its Safari browser. The search engine is preset there – just like on macOS and iPadOS – even though it has recently become easier to change it using a query screen thanks to the Digital Markets Act, at least in the EU. Meanwhile, Apple is also said to have been interested in buying DuckDuckGo as its own internet search engine, and Microsoft apparently tried to sell Bing to the iPhone manufacturer.
The 20 billion dollars make up a good chunk of Apple's important services business. Apple recently achieved quarterly sales of 23.11 billion dollars here – more than ever before. Bloomberg calculates that Google payments accounted for around 17.5 percent of Apple's operating income in 2020.
Most important default deal - and Microsoft's dreams
For Google, it is once again the most important "default deal" ever, especially in the USA. The partnership began in 2002 when Apple introduced Safari, but at that time the installation did not cost Google anything. According to prosecutors from the US Department of Justice, "more than one billion dollars" per month will be paid by May 2021.
Meanwhile, Microsoft is said to have tried to entice Apple with a 90 percent revenue share if Bing became the default search. Bloomberg also found this out from the documents. Microsoft boss Satya Nadella had testified in court that a partnership would have been a "game changer" for the company. Apple was the "kingmaker". Microsoft even wanted to hide the Bing brand to convince Apple.
Empfohlener redaktioneller Inhalt
Mit Ihrer Zustimmmung wird hier ein externer Preisvergleich (heise Preisvergleich) geladen.
Ich bin damit einverstanden, dass mir externe Inhalte angezeigt werden. Damit können personenbezogene Daten an Drittplattformen (heise Preisvergleich) übermittelt werden. Mehr dazu in unserer Datenschutzerklärung.
(bsc)
