Google paid $20 billion in 2022 to be the default search engine on Apple devices
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The ongoing antitrust lawsuit against Alphabet by the Justice Department has shed light on a significant revelation: Google paid a staggering $20 billion in 2022 to maintain its position as the default search engine on Apple devices.
Amidst the legal scrutiny, Google’s relationship with Apple has come into focus, with accusations that Google’s dominance in the search market has been maintained by leveraging its size against potential competitors. One major point of contention has been the undisclosed amount Google paid Apple, which has now been confirmed to be approximately $20 billion, as revealed in court filings.
Despite efforts to keep the payment details confidential, information surfaced during the trial, revealing the extent of the financial arrangement between the two tech giants. According to reports by Bloomberg, court documents unveiled that Google made a substantial payment of $20 billion to secure its status as the default search engine on Apple’s platforms throughout 2022.
While this $20 billion figure was not disclosed in Apple or Google’s financial reports, it was confirmed through testimonies that were unsealed during the trial. Eddy Cue, Apple’s Senior Vice President of Services, disclosed the figure during the proceedings.
What began as a free arrangement evolved into a highly profitable deal, with Google reportedly paying Apple over $1 billion monthly by May 2021. In 2020, this amounted to approximately 17.5% of Apple’s total operating income.