Google Forks Out Up to $20 Billion Annually to Apple for iPhone Search Access. Google’s Hefty Payment to Apple for Default Search on iPhone Revealed. While it’s been public knowledge that Google compensates Apple to remain the default search engine on iOS devices, the precise figure has been somewhat elusive.
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A 2021 analysis by Bernstein valued the payment around $10 billion annually. However, a recent update suggests Google now shells out between $18 and $20 billion to Apple each year. To provide some historical context, back in 2017, the estimated payout stood at $3 billion, which then escalated to approximately $9-10 billion in 2018.
The Register’s recent coverage delves into Bernstein’s newest findings, offering insights from a report that explores potential ramifications of a current U.S. legal probe. This investigation, launched in 2019 by U.S. Antitrust regulators, is aimed at discerning if Google has exploited its hegemony in the search engine sphere.
Should the legal probe conclude against Google, it could be a game-changer for existing big-tech collaborations, potentially shaking up the entire search domain. Bernstein’s estimates draw from Apple’s public records.
Analysts posit that Apple might eventually present users with a choice for their preferred search engine upon device setup. This could even include an Apple-branded search engine, an option that would currently raise eyebrows among regulators. The analyst further notes Apple’s strong position, highlighting its control over an ecosystem that pulls in roughly $60 billion in ad revenue. They believe Apple would continue to draw a commission, likely in the 25-30% range, for granting search ad revenue access.
Interestingly, recent revelations indicate Microsoft’s efforts to woo Apple into adopting Bing and even mulling over its acquisition. These endeavors didn’t see the light of day, largely due to Google’s attractive financial incentives to Apple.
In the global landscape, Google remains dominant, with a 90% search engine user base, while this number is even higher in specific regions, soaring up to 96%.
Amidst the legal proceedings, Microsoft’s head honcho, Satya Nadella, expressed concerns over the Apple-Google alliance, arguing that it significantly hampers Bing’s ability to compete effectively in the market.
