Highlights
1. Google paid large sums of money to secure its position as the default search engine on various products, including Apple devices like the iPhone.
2. These exclusive deals were more profitable for Google than the cost it took to maintain its dominance in the search market.
3. Apple was the company that received the highest payment from Google, totaling $18 billion in 2021, with the intention of preventing Apple from developing its own search engine.
4. In total, Google paid $26 billion in 2021 to various companies to be the default search engine on different devices.
Google’s Exclusive Search Engine Deals:
Google has come under scrutiny during its ongoing antitrust trial for its monopolistic practices in online search. It has been revealed that Google has been making exclusive deals to be the default search engine on various products, particularly Apple devices like the iPhone. These deals have been highly lucrative for Google, but the Department of Justice considers them to be illegal tactics.
Apple: Highest and Most Expensive Deal
Among the companies that Google has paid to secure its position as the default search engine, Apple received the highest amount. This is understandable considering Apple’s popularity and Google’s desire to prevent Apple from creating its own search engine. The initial estimate was $10 billion annually, but the actual amount Google paid to Apple in 2021 turned out to be $18 billion. However, this is not the only company that Google has made deals with.
Total Payments in 2021: $26 Billion
A recent report by Bloomberg’s Leah Nylen reveals that the total amount Google paid to companies to be the default search engine on various devices in 2021 was $26 billion. This amount is more than triple the sum Microsoft paid to acquire Zenimax Media that same year. It is clear that being the default search engine on multiple devices has significant benefits for Google, especially considering that search is its primary source of revenue.
In conclusion, Google’s exclusive search engine deals have allowed it to dominate the market, but they are now being questioned as potentially anticompetitive practices. The large sums of money paid by Google could lead to legal consequences beyond monetary penalties.
