In a recent development related to the DOJ’s antitrust suit against Google, court documents have revealed that Google paid Apple a whopping $20 billion in 2022 to secure its position as the default browser for Safari. This significant deal between Apple and Alphabet has become a focal point in the Justice Department’s allegations of Google’s monopolization of online search and advertising. As the case nears its conclusion with closing arguments scheduled for May 2nd and May 3rd, a final decision is expected later this year.
Both Apple and Google have been tight-lipped about the exact details of the deal, given the substantial amount of money involved. While Apple executives previously testified that Google paid them “billions” without specifying an exact figure, a slip from a Google witness revealed that 36% of Google’s Search ad revenue goes to Apple.
Google has similar default search engine agreements with other companies but its deal with Apple holds particular significance as it makes Google the primary search engine for the most widely used smartphone in the U.S., Safari.
The recently unsealed court documents provided insight into how crucial these payments from Google are to Apple’s profits. In 2020, Google’s payment accounted for 17.5% of Apple’s operating income. The partnership between Apple and Google dates back to 2002 when Google was initially allowed to be Safari’s default search engine at no cost. Over time, this evolved into a revenue-sharing agreement where by May 2021, Google was paying over $1 billion monthly to maintain its position.
To change your default search engine on iPhone’s Safari browser, simply navigate to Settings > Safari > Search Engine and select your preferred option from Yahoo, Bing, DuckDuckGo, or Ecosia.
Stay tuned for more updates on this evolving story as it continues to unfold.