Google paid Apple $20 billion for default search engine status
Google reportedly spent an enormous $20 billion in 2022 to maintain its position as the default search engine on Apple's Safari for iPhone, iPad, and Mac devices. This information surfaced through court documents during Google's ongoing antitrust lawsuit with the United States Department of Justice (DoJ), as reported by Bloomberg. The lawsuit accuses Google of monopolizing the online search and advertising industry.
Google's long-standing default agreement with Apple
Since 2002, Google has been the default search engine on Apple devices, a position secured through a costly and enduring agreement between the two tech giants. The specifics of this agreement have been a major point of dispute in the current antitrust case. Both companies had previously attempted to keep these details confidential, but they were disclosed in recently unsealed court documents.
Impact of Google-Apple partnership on market competition
The partnership between Apple and Google is considered one of the most crucial in Google's collection of default agreements. It secures Google's position as the primary choice on America's most popular smartphone and significantly boosts Apple's operating income—contributing 17.5% in 2020, according to court documents. Microsoft CEO Satya Nadella testified that this agreement has created barriers for other search engines like Bing to compete effectively.
User options and regulatory changes in Europe
Despite Google's default status, users of Apple devices in most countries can select alternatives like Yahoo, Bing, DuckDuckGo, and Ecosia in their Safari settings. In Europe, under the newly enacted Digital Markets Act, Apple is required to provide users with more choices for selecting a default browser during device setup. This regulatory change aims to foster competition among search engines.
