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- Google’s payment to Apple confirmed at $20 billion in 2022.
- The DOJ accuses Google of monopolizing the search and ad market, with a verdict expected soon.
Alphabet Inc.’s $20 billion payment to Apple Inc. in 2022 ensured Google remained the default search engine on Safari, highlight court documents from the Justice Department’s antitrust case.
This deal, central to the case, is scrutinized as Google faces allegations of monopolizing the search and advertising sectors. Closing arguments are scheduled for later this week, with a decision anticipated by year’s end.
These payments, which accounted for 17.5% of Apple’s operating income in 2020, underscore the financial significance of their arrangement.
Initially free in 2002, the agreement evolved into a lucrative partnership by 2021, with Google paying over $1 billion monthly for default status. The details, not disclosed in securities filings, were confirmed by Apple’s SVP of Services, Eddy Cue.
Microsoft has made several attempts to replace Google as Safari’s default search provider, offering to share 90% of Bing’s ad revenue with Apple.
Satya Nadella, Microsoft’s CEO, emphasized the potential transformative impact of such a switch, underscoring Apple’s pivotal role in shaping market dynamics.
