Google pays $12 billion a year to become Apple’s default search engine, accounting for 1/5 of the latter’s annual profit
Original title: Google pays $8-12 billion to Apple every year to become the default search engine for iOS
The two companies are Silicon Valley’s biggest competitors, but in some ways they are partners. The two companies are Silicon Valley’s biggest competitors, but in In some respects, they are partners again.
Sina Digital News reported on the morning of October 26. According to the New York Times, the US Department of Justice recently took the deal between Apple and Google as its focus. This may It is one of the largest antitrust cases in the United States.
On Tuesday, the Department of Justice filed an antitrust lawsuit against Google, claiming that the Mountain View-based company has adopted anti-competitive and exclusive practices in the search and advertising markets to maintain an illegal monopoly.
This matter is also related to Apple. In 2017, Apple made Google’s search engine a pre-option on Apple devices. According to the “New York Times” report, Apple can get about 8-12 billion US dollars in return each year, so that Google becomes the default search engine on its devices and services. It is believed that this is the largest payment made by Google to the outside world, accounting for 14% to 21% of Apple’s annual profits.
The prosecutor claimed that this transaction represented an illegal method used to protect Google’s monopoly and stifle competition. According to the Department of Justice, almost half of Google’s search volume now comes from Apple devices, and the loss of the agreement has been described as “terror” and “code red” within the company. Due to the settings of Google’s advertising system, search traffic is an integral part of its business model.
Apple has also come under fire for tacit transactions to promote anti-competitive behavior, and regularly renegotiates to obtain more funds. Although the two companies are rivals in Silicon Valley, the agreement is said to be part of a “non-competitor alliance.”
The Justice Department’s complaint quoted a senior Apple employee who said since 2018: “Our vision is that we are like working in a company.”
Legal intervention poses a threat to this part of Apple’s revenue, but it is a greater danger for Google. Google cannot make up for its lost traffic. “The New York Times” speculated that such a breakup may even prompt Apple to acquire or build its own search engine, which may pose a greater threat to Google.
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