Google paid Apple $20 Billion to be default search engine in 2022

Posted:
in iOS

The ongoing antitrust lawsuit against Alphabet by the Justice Department has revealed that Google paid Apple a staggering $20 billion in 2022 for default search engine status.

Google logo on the exterior of a modern building with reflective glass windows, surrounded by foliage under a clear sky.
In 2022, Alphabet paid Apple $20 billion



Google's relationship has been under heavy scrutiny during an antitrust lawsuit accusing the company of using its size as an advantage to prevent competitors from entering the search market. One of the biggest issues in question is how much it pays Apple, which was previously estimated to be nearly $20 billion -- a figure proven true by a new court filing.

Despite attempts by Google and Apple to keep the payment confidential, details emerged during the trial through testimony and accidental disclosures. According to a report from Bloomberg, court documents revealed that Google paid Apple $20 billion in 2022 to be the default search engine on Apple platforms.

The $20 billion figure wasn't in Apple or Google's security filings, but it was confirmed by unsealed testimonies. The figure was shared by Eddy Cue, Apple Senior Vice President of Services, during the trial.

Initially a free arrangement, it evolved into a lucrative deal where, by May 2021, Google was paying Apple over $1 billion monthly. In 2020, the figure was 17.5% of Apple's total operating income.

Close-up of an iPhone 14's dual camera lenses, flash, and logo on a white background.
Google pay Apple $20 billion for default search engine status on iPhone



Other figures were also disclosed by the filing. Microsoft tried to take over as the default search engine with Bing by offering 90% of its advertising revenue. Bing was even offered up for sale to Apple in 2020.

These factors are likely damning for Google's case. Google and the DOJ will offer closing arguments on Thursday and Friday, but a decision won't be made until later in the year.



Read on AppleInsider

Comments

  • Reply 1 of 13
    PemaPema Posts: 71member
    Yup. They sure did. And then they sacked a bunch of high-level employees to payoff some of the tab. In addition to which a mate of mine tells me that the meals in the cafeteria are no longer fully subsidised. 

    Google, has and always will be a one-trick pony. A very wealthy pony but that's it. If this whole AI thing comes of age someone else - not the makers of MS-DOS - will usurp Google in search and that will be it. 

    Without Search there is nothing else that they offer. Look at their website, every project they have ever attempted has gone to the elephant graveyard. I kid you not there's a website that lists some twenty products that they have RIP'ed. 

    Yes, they have Google Maps - which I use all the time, I don't trust Apple Maps - but that's not a money maker. They also have Google Docs - a mere blimp on their financial statement. And oh yes, YouTube. Does that make money?  

    Apple needs to absorb Google Search; Netflix and Spotify and it will become a 5 trillion company. Forget the Apple Jalopy and this Vision Pro madness. Google Search, Netflix and Spotify make money and they will make heaps more if Tim & Team manages them. 
    watto_cobra
  • Reply 2 of 13
    RonnyDaddyRonnyDaddy Posts: 32member
    Never, even for a single search, have I used this Google thing. 
    watto_cobraAlex_Vjony0
  • Reply 3 of 13
    gatorguygatorguy Posts: 24,388member
    Never, even for a single search, have I used this Google thing. 
    If you've used Safari you probably have. 
    muthuk_vanalingamgrandact73jony0
  • Reply 4 of 13
    neoncatneoncat Posts: 161member
    Pema said:
    Yes, they have Google Maps - which I use all the time, I don't trust Apple Maps - but that's not a money maker. They also have Google Docs - a mere blimp on their financial statement. And oh yes, YouTube. Does that make money?  
    Google Maps location information (when you tap a business result, for example) has layers from free through sponsored. Which locations appear "automatically" in relation to y our location and zoom level are also sponsored. Apple is moving in the same direction with Apple Maps data.

    YouTube reported over $30B in revenue in 2023 (through a combination of advertising and the YouTube Premium subscription program) and is generally considered to be second only to Google's search advertising business in terms of profitability. 

    Like all other cloud compute providers (Microsoft Azure, Amazon AWS), GoogleCloud has seen an immense surge in business as a result of companies spinning up cloud-based AI compute. While this may (or may not) be sustainable in the long-term, the immediate gains in terms of revenue and profit for all three companies are real. 

    Yes, Google is over-reliant on its search-based advertising business, much in the same way that Apple is over-reliant on the iPhone. Either company could face an existential threat if development of new technologies, or changes in consumer preference, cause irreversible swings away from these products. The chance of that happening in either case is slim, however, due largely to inertia and because both companies continue to build moats. Paying Apple to keep Google Search front-and-center is a form of moat. Apple fighting tooth and nail to avoid the opening of their App Store ecosystem is a form of moat. Neither company is going to go quietly as challengers to their cash cows gather in the distance. 
    edited May 2 gatorguymuthuk_vanalingamkiltedgreendewmewatto_cobrajony0
  • Reply 5 of 13
    danoxdanox Posts: 3,105member
    neoncat said:
    Pema said:
    Yes, they have Google Maps - which I use all the time, I don't trust Apple Maps - but that's not a money maker. They also have Google Docs - a mere blimp on their financial statement. And oh yes, YouTube. Does that make money?  
    Google Maps location information (when you tap a business result, for example) has layers from free through sponsored. Which locations appear "automatically" in relation to y our location and zoom level are also sponsored. Apple is moving in the same direction with Apple Maps data.

    YouTube reported over $30B in revenue in 2023 (through a combination of advertising and the YouTube Premium subscription program) and is generally considered to be second only to Google's search advertising business in terms of profitability. 

    Like all other cloud compute providers (Microsoft Azure, Amazon AWS), GoogleCloud has seen an immense surge in business as a result of companies spinning up cloud-based AI compute. While this may (or may not) be sustainable in the long-term, the immediate gains in terms of revenue and profit for all three companies are real. 

    Yes, Google is over-reliant on its search-based advertising business, much in the same way that Apple is over-reliant on the iPhone. Either company could face an existential threat if development of new technologies, or changes in consumer preference, cause irreversible swings away from these products. The chance of that happening in either case is slim, however, due largely to inertia and because both companies continue to build moats. Paying Apple to keep Google Search front-and-center is a form of moat. Apple fighting tooth and nail to avoid the opening of their App Store ecosystem is a form of moat. Neither company is going to go quietly as challengers to their cash cows gather in the distance. 

    That 20 billion dollar bribe keeps Apple from developing a YouTube clone or getting into cloud services or servers and has been money well spent if you are Google, the ability of smarter search for everyone thru AI will disrupt Google in a big way. Getting rid of the bribe will be the only good thing the DOJ will do.
    edited May 2 watto_cobra
  • Reply 6 of 13
    9secondkox29secondkox2 Posts: 2,905member
    That’s the product placement business. Good on both. 
    watto_cobra
  • Reply 7 of 13
    gatorguygatorguy Posts: 24,388member
    danox said:
    neoncat said:
    Pema said:
    Yes, they have Google Maps - which I use all the time, I don't trust Apple Maps - but that's not a money maker. They also have Google Docs - a mere blimp on their financial statement. And oh yes, YouTube. Does that make money?  
    Google Maps location information (when you tap a business result, for example) has layers from free through sponsored. Which locations appear "automatically" in relation to y our location and zoom level are also sponsored. Apple is moving in the same direction with Apple Maps data.

    YouTube reported over $30B in revenue in 2023 (through a combination of advertising and the YouTube Premium subscription program) and is generally considered to be second only to Google's search advertising business in terms of profitability. 

    Like all other cloud compute providers (Microsoft Azure, Amazon AWS), GoogleCloud has seen an immense surge in business as a result of companies spinning up cloud-based AI compute. While this may (or may not) be sustainable in the long-term, the immediate gains in terms of revenue and profit for all three companies are real. 

    Yes, Google is over-reliant on its search-based advertising business, much in the same way that Apple is over-reliant on the iPhone. Either company could face an existential threat if development of new technologies, or changes in consumer preference, cause irreversible swings away from these products. The chance of that happening in either case is slim, however, due largely to inertia and because both companies continue to build moats. Paying Apple to keep Google Search front-and-center is a form of moat. Apple fighting tooth and nail to avoid the opening of their App Store ecosystem is a form of moat. Neither company is going to go quietly as challengers to their cash cows gather in the distance. 

    That 20 billion dollar bribe keeps Apple from developing a YouTube clone

    Apple accepts bribes??
    edited May 2
  • Reply 8 of 13
    gatorguy said:
    Never, even for a single search, have I used this Google thing. 
    If you've used Safari you probably have. 
    I use safari with duck duck go on iOS, iPadOS and macOS. Aside from the rare, reluctant use of YouTube without a sign in, I don’t touch google services. Safari does a good job of blocking googles (and fecesbooks)  trackers too. 
    RonnyDaddywilliamlondon
  • Reply 9 of 13
    dewmedewme Posts: 5,540member
    Yes, Google’s golden goose is definitely their ads and search business, but as a technologist I’ve always kept an eye on what’s happening in their developer and labs focused areas. Yeah, they often end up throwing stuff into the dumpster but they also release stuff to the open source community. I’ve used Google initiated and Google adjacent technology like Protocol Buffers and nodeJS to good effect on real products. At the end of the day Google still has some of the world’s smartest engineers and scientists working under their roof. As they say, keep your friends close, but keep your enemies closer - especially when they have so many smart people on their team.
    neoncatmuthuk_vanalingam
  • Reply 10 of 13
    RonnyDaddyRonnyDaddy Posts: 32member
    gatorguy said:
    Never, even for a single search, have I used this Google thing. 
    If you've used Safari you probably have. 
    I don’t use Safari. Sorry.
  • Reply 11 of 13
    gatorguygatorguy Posts: 24,388member
    gatorguy said:
    Never, even for a single search, have I used this Google thing. 
    If you've used Safari you probably have. 
    I don’t use Safari. Sorry.
    Smart
    muthuk_vanalingam
  • Reply 12 of 13
    danoxdanox Posts: 3,105member
    gatorguy said:
    danox said:
    neoncat said:
    Pema said:
    Yes, they have Google Maps - which I use all the time, I don't trust Apple Maps - but that's not a money maker. They also have Google Docs - a mere blimp on their financial statement. And oh yes, YouTube. Does that make money?  
    Google Maps location information (when you tap a business result, for example) has layers from free through sponsored. Which locations appear "automatically" in relation to y our location and zoom level are also sponsored. Apple is moving in the same direction with Apple Maps data.

    YouTube reported over $30B in revenue in 2023 (through a combination of advertising and the YouTube Premium subscription program) and is generally considered to be second only to Google's search advertising business in terms of profitability. 

    Like all other cloud compute providers (Microsoft Azure, Amazon AWS), GoogleCloud has seen an immense surge in business as a result of companies spinning up cloud-based AI compute. While this may (or may not) be sustainable in the long-term, the immediate gains in terms of revenue and profit for all three companies are real. 

    Yes, Google is over-reliant on its search-based advertising business, much in the same way that Apple is over-reliant on the iPhone. Either company could face an existential threat if development of new technologies, or changes in consumer preference, cause irreversible swings away from these products. The chance of that happening in either case is slim, however, due largely to inertia and because both companies continue to build moats. Paying Apple to keep Google Search front-and-center is a form of moat. Apple fighting tooth and nail to avoid the opening of their App Store ecosystem is a form of moat. Neither company is going to go quietly as challengers to their cash cows gather in the distance. 

    That 20 billion dollar bribe keeps Apple from developing a YouTube clone

    Apple accepts bribes??
    Donations.... :smile: 
  • Reply 13 of 13
    avon b7avon b7 Posts: 7,892member
    danox said:
    gatorguy said:
    danox said:
    neoncat said:
    Pema said:
    Yes, they have Google Maps - which I use all the time, I don't trust Apple Maps - but that's not a money maker. They also have Google Docs - a mere blimp on their financial statement. And oh yes, YouTube. Does that make money?  
    Google Maps location information (when you tap a business result, for example) has layers from free through sponsored. Which locations appear "automatically" in relation to y our location and zoom level are also sponsored. Apple is moving in the same direction with Apple Maps data.

    YouTube reported over $30B in revenue in 2023 (through a combination of advertising and the YouTube Premium subscription program) and is generally considered to be second only to Google's search advertising business in terms of profitability. 

    Like all other cloud compute providers (Microsoft Azure, Amazon AWS), GoogleCloud has seen an immense surge in business as a result of companies spinning up cloud-based AI compute. While this may (or may not) be sustainable in the long-term, the immediate gains in terms of revenue and profit for all three companies are real. 

    Yes, Google is over-reliant on its search-based advertising business, much in the same way that Apple is over-reliant on the iPhone. Either company could face an existential threat if development of new technologies, or changes in consumer preference, cause irreversible swings away from these products. The chance of that happening in either case is slim, however, due largely to inertia and because both companies continue to build moats. Paying Apple to keep Google Search front-and-center is a form of moat. Apple fighting tooth and nail to avoid the opening of their App Store ecosystem is a form of moat. Neither company is going to go quietly as challengers to their cash cows gather in the distance. 

    That 20 billion dollar bribe keeps Apple from developing a YouTube clone

    Apple accepts bribes??
    Donations.... :smile: 
    Ha! Yes. I think that is definitely an area where Google will be somewhat nervous about how the investigation plays out. 

    Is Google paying to be the default or for Apple to stay off its turf?

    I will admit to being surprised by the amount mentioned here. 
    edited May 3
Sign In or Register to comment.