Google's $20 Billion Payment To Apple: Why The Search Engine Struck A Deal With Apple

Google paid Apple nearly $20 billion in 2022 to remain the 'default' and dominant search engine in the web space
Google & Apple
Google & AppleReuters

Google is struggling to stay away from media headlines. From layoffs to AI controversies, and now to "paying billions" for monopolising its position in the web space as the default and dominant search engine for users.

In a recent report, it was revealed that Google paid nearly $20 billion to Apple, in 2022, to ensure Google remains the default search engine on Apple devices.

This amount was revealed during the Justice Department’s antitrust lawsuit against Google. While the tech giant has long faced allegations of indulging in unfair and antitrust activities to maintain its illegal dominance in the market, the deal between the two companies is at the heart of this landmark case, according to a report by Bloomberg

It is worth noting that both companies had tried to hide this figure from public disclosure. Earlier as well, one of Apple's executives mentioned that Google had paid "billions." As per the report, a Google witness had unintentionally revealed that Google gives nearly 36 per cent of its revenue from search ads to Apple.

However, neither Google nor Apple had mentioned these figures in their security filings. The court documents also stated that Google's payment also impacted Apple's financial health.

Apple had first incorporated Google into the Safari browser in 2002 for free. However, they eventually opted to split the revenue generated from search advertising. According to prosecutors, by May 2021, this arrangement meant that Google was paying Apple over $1 billion monthly for maintaining its default status.

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