Google Reportedly Pays Apple $8-12 Billion Per Year to be Default iOS Search Engine
The U.S. Department of Justice is reportedly targeting a lucrative deal between Apple and Google as part of the U.S. government’s largest no-confidence motion. New York Times.
The Department of Justice on Tuesday filed a no-confidence motion against Google, alleging that the Mountain View-based company used contradictory and exclusionary practices in the search and advertising markets to maintain an illegal monopoly.
In 2017, Apple updated an agreement to keep Google’s search engine as a pre-selected option on Apple devices. New York Times It is reported that Apple will receive $ 8 or 12 billion a year to make Google the default search engine for devices and services, including the iPhone and Siri. Google believes this is the largest payment anyone can make, accounting for 14 to 21 percent of Apple’s annual profits.
Lawyers say the deal represents an illegal tactic used to protect Google’s monopoly and suppress competition. According to the Department of Justice, about half of Google’s search traffic now comes from Apple devices, and the prospect of losing the deal has been described as a “dangerous” and “red code” situation within the company. Because of the advertising system, Google search traffic is essential to its business model.
Apple has also set itself on fire to facilitate competitive behavior by agreeing to the deal and making more money by negotiating regularly. Although the two companies are rivals in Silicon Valley, the agreement is said to be part of a “rival coalition”.
Department of Justice Complaint “Our vision is to work as one company,” he said, quoting a statement from a senior employee of Apple since 2018.
Legal intervention threatens a significant portion of Apple’s revenue, but it poses a serious threat to Google, and it appears that there is no way to restore lost traffic. New York Times Such a crash could force Apple to acquire or build its own search engine, which could pose an even greater threat to Google.
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