During the current period antitrust lawsuit, it was revealed that Google pays Apple 36% of search advertising revenue from the Safari browser. This detail, from the testimony of Kevin Murphy, professor at the University of Chicago, sheds light on the financial dynamics of the long-standing partnership between the two technology giants. according to Bloomberg report.
Unveiling of the financial terms of the Google-Apple partnership
The partnership, which began in 2002, positioned Google as the default search engine in Apple’s Safari browser. This deal is particularly crucial because it influences search engine settings on iPhones, the most popular smartphone in the United States. The fact that this is Google’s largest default search engine deal underlines the importance of the deal.
The antitrust implications of the Google-Apple deal
The Justice Department’s focus on the deal is part of a broader investigation into Google’s practices. The department is investigating whether the deal is part of Google’s strategy to illegally maintain its dominance in the search engine and search advertising industries. Revealing the revenue sharing percentage is a key piece of evidence in this investigation.
The release of this information was unanticipated and visibly affected John Schmidtlein, Google’s lead litigator. Google and Apple had previously opposed releasing details of their deal, citing concerns about competitive disadvantages. Google argued in a court filing last week that revealing more information about the deal could negatively impact its competitive position.
As the trial progresses, the technology industry is closely monitoring developments. The outcome could have significant implications for both businesses and the market as a whole. Apple has yet to comment on the matter and Google declined to comment.