Being the default search engine in the Safari web browser is apparently worth an enormous amount of money. Google reportedly pays Apple between $18 billion and $20 each year for the privilege.
But the payments might come to an end as a result of the antitrust accusations the Department of Justice brought against the search giant.
iPhone users can search for something in Safari simply by entering a few worlds in the browser’s address bar. By default, Google is the search engine that’s used for this.
An Apple executive testified recently that Google has this role because it’s “the best.” But the DoJ argues that the hefty annual payment from Google is the real reason.
And the cash changing hands totals near $20 billion each year, according to analysts at Bernstein (as reported in The Register). For comparison, Apple’s net revenue in 2022 was $394 billion, so the deal with Google accounts for about 5% of Apple total annual revenue.
Might come to an end
Google is currently defending itself in court in the antitrust trial United States et al v. Google LLC. The Department of Justice and a number of state attorneys general allege that Google has a monopoly in the internet search business, and that it uses its dominance to stifle competition so it stays on top.
The payments to Apple to be the default Safari search engine are an important part of the government’s case. And if the DoJ wins, they might stop.
“We believe there is a possibility that federal courts rule against Google and force it to terminate its search deal with Apple,” said Bernstein in its report.
