Google shells out massive amounts of cash to Apple to remain the primary search engine on iPhones, iPads, and Macs.
Toni Sacconaghi, an analyst from Bernstein, says Google forked over $18 billion in 2021 alone, as per a Fox News report. Despite the eye-popping figures, there was a dip to $8 billion in 2023, all thanks to an antitrust lawsuit that's been turning heads. The legal conflict with the US Department of Justice kicked off in 2020 and accused Google of playing dirty to keep its influence in the search business by cozying up to Apple with exclusive deals.
In this photo illustration, several Google apps are displayed on a smartphone on March 3, 2018 in Berlin, Germany.
However, Google asserts that these agreements are in place to ensure customer satisfaction and equitable playing fields. Nevertheless, experts believe that this conflict has the potential to disrupt the tech industry significantly.
Why is Google Paying a Lot?
Even with all the courtroom battles, Google's still spending serious cash, a clear sign the internet giant will not give up its search engine dominance without a fight. Given that Google controls an enormous 90% of the market, the issue is significant.
In the face of competition from other search engines that strongly emphasize environmental sustainability, privacy, or charity giving, Google's business arrangements with Apple are designed to maintain customer loyalty.
Google pays Apple, which is mostly a hardware supplier; these payments make up about 12% of Apple's overall income. This funding influx helps Apple maintain its competitive advantage and consumer loyalty by supporting its investments in services, goods, and R&D.
The acquisition could go undetected by iPhone customers since Google is still a strong and useful search engine that is integrated with several Apple devices. However, users could be worried about Google's data methods and influence on search results.
Google and Apple work well together, but some folks might pick different search engines if they care more about things like privacy, safety, or being socially responsible.
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On iPhones, Safari starts with Google as the main search engine. But still, as per Screen Rant, switching to other iPhone engines, like Bing, DuckDuckGo, or Yahoo, can still be done effortlessly. One can do it by heading over to the Settings app, and you can modify it.
Choose Safari, touch "Search Engine," then pick from Yahoo, Bing, DuckDuckGo, and Ecosia, among other alternatives. Regardless of the browser mode, the chosen search engine is for all searches made in Safari on that device.
Another Antitrust Case Slapped Against Google
The Epic Games antitrust trial against Google began in San Francisco this past week. According to the video game company, Google broke federal antitrust rules by forcing app developers to process user payments via the Google Play Store, which gave the internet giant a cut of the proceeds.
According to a Washington Post article, Android app developers may benefit if the Fortnite maker wins the case, but the lawsuit is questionable without the other plaintiffs who withdrew. Google refutes the allegations, claiming that Google Play is a rival to the Apple App Store and that its revenue-sharing policy is reasonable.
The legal conflict started in the summer of 2020 when Epic Games contested Apple and Google's demand for a cut in in-app purchases. After Epic modified its Fortnite app, which allowed players to pay Epic directly, Fortnite was taken down from both app stores. Epic sued Apple and Google for Sherman Antitrust Act breaches. After a swift legal proceeding, a federal court dismissed Epic's allegation that Apple was an unlawful monopolist in 2021.
An appeals court in April affirmed the judge's judgment for Apple to provide other payment methods in the App Store. Apple and Epic have both filed appeals with the US Supreme Court.
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