Google pays Apple as much as $20 billion per 12 months to be the default search engine in Safari, the browser of the Cupertino firm. The settlement between the 2 corporations was by chance revealed throughout the Google antitrust trial.
The settlement was signed in 2002, 5 years earlier than the launch of the primary iPhone. Since then, Google has been the default search engine on all Apple gadgets, together with iPhones, iPads, and Macs.
By paying this quantity to Apple, Google ensures that its search engine is displayed first for customers of Apple gadgets. This provides Google a major aggressive benefit, as Safari is the preferred browser on cellular gadgets.
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As well as, Google additionally pays Apple 36% of the income it generates from advertisements in Safari. Which means that each time a consumer searches for one thing on Google in Safari, they’re “serving to” Apple to earn extra money.
The settlement between Google and Apple is controversial. Some specialists imagine it’s anti-competitive and harms shoppers by decreasing the selection of engines like google obtainable.
Apple, alternatively, defends the settlement, arguing that it’s helpful for customers because it ensures they’ve entry to the very best search engine obtainable.
Impact of the agreement
The settlement between Google and Apple has a major affect on the know-how business. It offers Google a major aggressive benefit, which might hurt competitors.
As well as, the settlement might additionally restrict client alternative, because it reduces the variety of engines like google obtainable.
Nonetheless, it is very important notice that the settlement is helpful for each corporations. Google ensures that its search engine is displayed first for customers of Apple gadgets, which provides it a major aggressive benefit. Apple earns cash from the settlement, because it receives a share of Google’s income from advertisements in Safari.