Theoretically the amount of revenue sharing should be kept secret, but Google witnesses accidentally leaked this figure in an antitrust lawsuit by the U.S. Department of Justice.
An economic expert representing Apple said Google would have to pay Apple 36% of all revenue it makes from search ads on its Safari browser, which includes iPhones, iPads and Macs.
Google’s lead lawyer “visibly cringed” when he revealed the revenue figures, which are supposed to be confidential, Bloomberg reported.
Last month, wealth management company Bernstein said that Apple receives $18-20 billion in revenue from Google every year, accounting for about 15% of Apple’s annual operating profit.
Image source Pexels
Google has been the default search engine on Apple devices since 2002, although the agreement between the two companies has been revised several times. Apple made a lot of money from the deal, and Google became the default search option on the world’s most popular smartphone.
The U.S. Department of Justice is currently investigating Google for alleged monopoly, and Google’s profitable search engine deal with Apple has been the main focus of the legal battle, which is expected to last until the end of November.
Last October, Microsoft CEO Satya Nadella said the agreement between Apple and Google made it impossible for other search engines like Bing to compete. “You wake up in the morning, brush your teeth, and then you search on Google. The way habits are formed, the only way to change them is to change the default settings.”
In October last year, Apple services chief Eddie Cue testified at the trial that Google was the default search engine on the iPhone because it was the best choice. “We make Google the default search engine because we have always believed that is the best.” Apple has been unable to change this arrangement because there is no “effective alternative.”
It is worth mentioning that although Google is the default search engine on Apple devices, users can also manually switch to engines such as Yahoo, Bing, DuckDuckGo or Ecosia, but this requires entering the settings interface of the Safari browser.
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