Photo: Rajesh Pandey/Cult of Mac
Google paid Apple $20 billion for Google to remain the default search engine across all Apple devices. This figure came to light through court documents submitted in the US Justice Department’s lawsuit against Google.
During the course of the hearing, Google and Apple tried their best not to reveal the amount publicly.
Apple prefers Google because it is the best
An October 2023 report also estimated Apple receiving $18-$20 billion from Google in 2022. This time around, the documents reveal the exact figure of $20 billion, coming directly from Apple’s SVP of services, Eddy Cue.
The Bloomberg report details that during last fall’s trial, Apple said Google paid them “billions” to be the default search engine. A Google witness later accidentally testified that the company pays Apple 36% of the revenue from search ads.
While it is vital for Google to remain the default search engine on iPhone and Mac, the money also plays a big role in Apple’s bottom line. As per the document, Google’s payment accounted for 17.5% of Apple’s revenue.
However, as Eddy Cue testified during the hearing, Apple prefers Google not because of the billions of dollars it receives but because it is “the best.”
During the trial last year, Microsoft CEO Satya Nadella revealed that it was offering Apple multiple concessions to move away from Google. These include sharing 90% of the advertising revenue and hiding the Bing logo in Safari on iPhone. The switch would have been “game changing,” which is why Microsoft was willing to make these concessions.
Google’s deal with Apple could put it into trouble
Given the iPhone’s popularity in the US, it’s crucial for Google to remain the default search engine on the devices. This also explains why Google paid Apple more than $1.5 billion monthly in 2022. But this move will now probably get the company into trouble.
If the US Justice Department wins its lawsuit against Google’s alleged monopoly in search and advertising, the latter might have to cancel its deal with Apple.
Google and the Justice Department will submit their closing arguments on Thursday and Friday. The court’s final decision will arrive later this year.