Alphabet paid Apple $20 billion in 2022 to keep Google as the default search engine in the Safari browser to strengthen its monopoly position in the search engine market.
Monopoly Fee
Billion Dollar Contract
In 2022, Alphabet paid Apple an incredible $20, according to declassified court documents billions to keep the Google search engine standard in the Safari browser. Such a step was taken by companies to maintain Google's dominant position in the search engine market, preventing competitors.
Hiding the details
Both companies tried to hide the details of this deal, because at last year's court hearing Apple executives only confirmed the fact of payments of "billions of dollars" from Google, without naming the exact figures. However, a Google representative later accidentally leaked information that the company was giving Apple 36% of its search advertising revenue.
Market monopolization
Journalists call this contract "Google's most important deal" because the iPhone is the most popular smartphone in the US. Microsoft previously tried to convince Apple to make its Bing search engine standard in Safari, offering to share 90% of advertising revenue, making numerous concessions and even hiding the Bing brand.
History of the agreement
The cooperation between Apple and Google began back in 2002, when Apple agreed to use Google as a search engine in Safari for free. Eventually, the companies began sharing advertising revenue, and since May 2021, Alphabet has been paying Apple more than $1 billion per month to be the default search engine.
Glossary
- Alphabet is a holding company that includes Google, specializing in Internet search and advertising technologies.
- Apple is an American company that manufactures personal computers, smartphones, tablets and other electronic devices.
- Safari is a web browser developed by Apple for devices running the macOS and iOS operating systems.
- Microsoft is an American multinational corporation specializing in computer software, electronics manufacturing, and information technology services.
- Bing is a search engine developed by Microsoft.
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Answers to questions
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Why is this deal important to Google?
Who else has tried to make Safari the default search engine?
How did the agreement between Apple and Google change?
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Discussion of the topic – Sensational deal: Alphabet paid Apple $20 billion for Google's Safari
Alphabet paid Apple $20 billion in 2022 to make Google's search engine the default in the Safari browser. That amount has been kept under wraps, but was recently revealed in court documents in an antitrust lawsuit against Google.
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Іван
It is unacceptable that corporations resort to such scams! Google and Apple have effectively monopolized the search market and are inhibiting the development of alternatives. 🤨
Юлія
I understand your concern, Ivan. However, it should be recognized that Google provides quality search services. Although monopoly threatens competition. 💭
Макс
It is necessary to face the truth - users simply choose more convenient and better services from Google and Apple. Is that bad? 🤷 ♂️
Анна
However, we cannot ignore the fact that Google is paying Apple crazy money for privileged status. Is that fair? Do the competitors have no chance? 😕
Богдан
Hmm, I guess the problem is not the deal itself, but the fact that it is closed from the public. Why not reveal the details and promote transparency? ⁉️
Ганс
These newfangled technologies only distract people from real life. In my time, we read books and chatted live. And now everyone is sitting in their gadgets. Nasty business! 😤
Соня
But, Hans, technology also opens up new opportunities for communication and access to knowledge. It is important to find a balance and not abuse them. 💻💡
Петро
In my opinion, the US government did the right thing by opening an investigation against Google. Monopolies are bad for the market and consumers in the long run. 👍