According to Bloomberg, during its ongoing antitrust dispute with the United States Department of Justice (DoJ), Google disclosed in court documents that it paid Apple a substantial $20 billion in 2022 to retain its status as the default search engine for Safari on iPhone, iPad, and Mac devices.
The ongoing antitrust lawsuit against Google accuses the company of monopolizing the search engine and online advertising industries. As part of this alleged monopoly, Google has maintained a costly and long-standing deal with Apple. Since 2002, Google has been the default search engine on Apple devices, with the arrangement undergoing multiple renegotiations over the years. In 2022, Google paid a substantial $20 billion (approximately Rs 2,000 crores) as part of this deal.
Interestingly, the financial relationship between Google and Apple has become a focal point in the current antitrust lawsuit, with Google attempting to keep the specifics of the agreement confidential. Bloomberg’s report highlights that the Apple-Google agreement is vital in Google’s portfolio of default deals, as it solidifies Google’s position as the default search engine on the most popular smartphone in the U.S.
This partnership is mutually beneficial: it helps Google maintain its dominance in the search market, while the payments from Google constitute a significant portion of Apple’s operating income—according to court documents, it made up 17.5% in 2020.
Apple’s relationship with Google has drawn attention from competitors. Microsoft’s CEO, Satya Nadella, testified that the agreement between Apple and Google has hindered other search engines, including Bing, from competing effectively. Microsoft even attempted to entice Apple away from Google by offering to share a significant portion of advertising revenue to make Bing the default search engine on Safari. However, Apple ultimately decided to stick with Google due to its perceived superior quality and capabilities.
Despite this preference for Google, users of Apple devices in most countries can still choose alternative search engines like Yahoo, Bing, DuckDuckGo, and Ecosia in their Safari settings. Additionally, the Digital Markets Act in Europe now requires Apple to provide users with more options for selecting a default browser during device setup1.
In summary, while Google remains the default search engine for most Apple users, the landscape is evolving, and regulations are pushing for greater choice in search engine options.