You probably use Google as your default search engine on your iPhone or Mac, without even thinking twice. But did you know that this situation is not the result of chance, but rather of a financial agreement between the two tech giants?
Google and Apple struck a secret deal several years ago to keep Google as Safari’s default search engine. But what is the cost of this agreement for Google? According to new documents revealed in an antitrust lawsuit, Google pays $20 billion a year to Apple to maintain this privileged position. In any case, this is the amount paid in 2022.
Why is Google willing to pay so much to remain Safari’s default search engine? Quite simply because it allows it to generate colossal advertising revenue.
Indeed, being the default search engine means that Safari users use Google by default to search the web, which allows Google to display targeted advertisements based on user searches. Google is estimated to have generated more than $50 billion from Apple’s web browser alone in 2022.
Economic issues, but also ethical
This agreement between Apple and Google raises questions. Indeed, by paying to be the default search engine, Google prevents users from discovering other, more privacy-friendly or ethical search engines. Additionally, this agreement strengthens Google’s dominant position in the online search market, which may harm competition and innovation.
It is interesting to note that the agreement between Apple and Google does not provide for a fixed amount per year, but rather a percentage of advertising revenue generated by Google via Safari. So, the more advertising revenue Google generates through Safari, the more money Apple makes. According to a witness cited in the antitrust trial, Apple would keep 36% of Google’s advertising revenue in Safari.