Google finds itself entangled in a contentious legal battle with the US Department of Justice. In a recent disclosure, it has been revealed that the tech giant, widely recognized for its online search dominance, contributed an impressive 36% of its Safari search revenue to Apple as part of a lucrative partnership, as reported by Bloomberg.
The enduring and mutually advantageous collaboration between Google and Apple has solidified over time. As the leading search engine, Google has established itself as the default search provider on Apple’s Safari browser, a pre-installed feature on all Apple devices such as iPhones, iPads, and Macs. This strategic partnership undeniably plays a crucial role in delivering a seamless user experience for millions of Apple device users across the globe.
Court proceedings in the ongoing antitrust lawsuit against Google have exposed the financial details of this collaboration. As outlined in a Bloomberg report, Google committed to remit a significant 36% of its revenue derived from searches conducted through the Safari browser to Apple. Notably, this information came to light as a result of an ‘accidental’ revelation by University of Chicago professor Kevin Murphy, often regarded as a key economics expert for Google.
This number emphasizes the substantial importance Google attaches to upholding its leading position in the search engine market, especially within the Apple ecosystem.
The lucrative Apple-Google deal
The legal proceedings have brought into focus the extensive measures taken by Google to maintain its default search status on Apple devices. It came to light that Google pays nearly $18 billion annually to guarantee that Search is the default option on Apple devices. The US Department of Justice contends that this arrangement could lead to diminished competition in the search engine realm, possibly constraining user choice and innovation.
The substantial portion of Google’s Safari search revenue, accounting for 36%, contributes significantly to Apple’s overall income. This financial influx is particularly noteworthy as Apple continues to broaden its revenue streams beyond hardware, placing increased emphasis on services like Apple Music, iCloud, and the App Store.
As the antitrust lawsuit against Google unfolds, the impact of this disclosure on the final decision and whether it will trigger heightened regulatory scrutiny on analogous agreements remains uncertain.
