You might think that Google and Apple are rivals, but they have a cosy relationship when it comes to search.
Google is shelling out billions to be the default search engine on Apple’s devices, Alphabet CEO Sundar Pichai admitted this week amid ongoing antitrust scrutiny.
Testifying in an unrelated trial between Epic Games and Google, Pichai confirmed that the search giant pays Apple a whopping 36% cut of the ad revenue it earns from iPhone users’ Safari searches.
This massive annual payout was accidentally revealed by a Google expert witness on Monday during the company’s Washington DC antitrust trial. When pressed by Epic’s lawyer, Pichai acknowledged the 36% figure was legit.
But Google isn’t quite as generous with other partners like Samsung, the lawyer suggested, alleging the company pays Samsung less than half what Apple gets. Though he wasn’t positive, Pichai said it was “possible.”
“It’s like apples and oranges,” Pichai explained, noting deals with Samsung sometimes involve carrier payments too. Later in the testimony, he maintained Google still “competes fiercely with Apple.”
Between all its traffic acquisition costs, Google shelled out almost $49 billion last year to buddies like Apple and Samsung to remain the default search option on devices and browsers.
When asked about the exact number it gives Apple annually, Pichai floated over $10 billion. But Epic’s lawyer pushed back, insisting it’s closer to a whopping $18 billion every year.
The search giant is battling legal on multiple fronts, including two separate antitrust suits from the DOJ related to alleged anticompetitive practices. Google also faces allegations from Epic itself that it’s illegally maintained a monopoly over app distribution through its Google Play store.
Source:indianexpress.com