Google Mega Deal: Google is currently embroiled in an antitrust case in the United States, and it has recently started presenting its defense. The US Justice Department alleges that Google established a monopoly in the online search industry by paying to be the default search engine on various browsers and phones. Just before Google's defense in the trial, reports have emerged suggesting that the tech giant paid billions of dollars to Apple to ensure that Google remains the default search engine on Apple devices.
Google Pay Billions to Apple
During the trial, it was estimated that Google paid Apple a substantial sum, ranging from $10 billion to $20 billion, as part of their agreement to make Google the default search engine on Apple's Safari browser. Now, a recent report from The New York Times, citing sources familiar with the partnership, claims that Google paid Apple a staggering $18 billion in 2021 alone.
Google's Concerns and Response
The report highlights Google's concerns about Apple's efforts to improve its search technology. Apple's search tool on iPhones, known as Spotlight, started providing users with richer web search results, similar to those offered by Google. In response, Google reportedly sought ways to compete with Spotlight by developing its own version for iPhones. Additionally, Google aimed to encourage more iPhone users to switch from Apple's Safari browser to Google's Chrome web browser.
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Microsoft's Perspective
Microsoft's CEO, Satya Nadella, also weighed in on the situation, although from a slightly different angle. While The New York Times report focused on Google's concerns about Apple's search technology improvements, Nadella's comments indicated that Apple was worried that Google might leverage its popular services like Gmail to persuade users to adopt the Chrome browser.
Nadella revealed that Microsoft had aspirations to become the default browser on Apple devices but was limited by financial constraints. He implied that Microsoft was willing to pay as much as $15 billion to secure the position of Apple's default search engine.
Google, however, contends that users always have the option to change their default search engine to one of their preference, even though Google's search engine comes pre-set on these devices.
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