The ongoing antitrust lawsuit between the US Department of Justice (DoJ) and Google has brought to light a significant $20 billion payment that Google made to Apple in 2022. This substantial payment was reportedly made to secure Google's position as the default search engine on Apple's Safari browser across various devices like iPhones, iPads, and Macs.
Secrecy Unveiled
The revelation of this $20 billion deal stems from a court document that has been recently made public. Remarkably, both Google and Apple have been discreet about the details of this agreement, despite having renegotiated it multiple times since 2002, when Google first became the default search engine on Apple devices.
Industry Reactions
The Department of Justice's pursuit of transparency has led to these findings, with last year's lawsuit indicating that Google's payments to Apple represented a substantial 36% of Apple's total Safari revenue. This new disclosure of the exact amount, $20 billion, has raised eyebrows and sparked criticism from competitors such as Microsoft. Microsoft's CEO, Satya Nadella, has argued that this deal hampers competition for search engines like Bing, noting that Microsoft had previously tried, without success, to have Apple switch to Bing as the default search engine.
The Verdict Awaits
Apple has stood by its decision, with Apple's Eddy Cue defending the choice in court and expressing doubts about Bing's ability to rival Google in terms of quality and functionality. Apple maintains that Google provides the best search experience for its users. The final outcome of this agreement now hangs in the balance of the ongoing DoJ lawsuit, with closing arguments scheduled for later this week and a final ruling expected in 2024. Should Google be on the losing end of the case, the deal with Apple may face potential nullification. Stay updated with Gizmochina for more coverage on this unfolding story.
