Google has an agreement (Information Services Agreement) with Apple to secure its default search engine position on iOS devices. In 2021, analyst firm Bernstein claimed that Google paid Apple $ 10 billion a year to protect it. The new report claims that Google’s payment to Apple has increased even more.Google pays billions of dollars to Apple!
Google is alleged to be paying Apple between $18 billion and $20 billion a year to remain the dominant search engine on the iPhone. This deal is estimated to account for 14-16% of Apple’s annual operating profit. It is estimated that Google spends 22% of its total ad revenue as part of traffic acquisition costs, with Apple probably taking in around 40% of that. These figures are based on analysis of Apple’s publicly available files as well as Google’s traffic acquisition costs.
Last month, it was revealed that Microsoft was considering selling the Bing search engine to Apple. Had the acquisition gone through, Bing would have replaced Google as the default search engine on Apple devices. Experts say there is a possibility that Google will lose the case, which would greatly jeopardize Apple’s lucrative deal that has been going on for a decade. However, the decision on the case is not expected before 2024.
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