Google and Apple are considered archenemies. However, these two companies are also partners. So that the Google search remains the default search engine for Safari on the iPhone every year, Google makes a payment to the company Cupertino.
Then Google makes money by showing ads on the screens of iPhone users who use the search engine. And, of course, the amount Google owes Apple to allow iPhone owners to use its search engine continues to grow.
$ 8 to $ 12 billion?
While that payment was estimated at $ 1.4 billion in 2014, it would now be $ 8 to $ 12 billion per year. In any case, this is what an article published by the New York Times indicates about a US Department of Justice antitrust complaint against Google.
Contracts like the one between Google and Apple, with which Google can record data traffic from iPhone users, would be the subject of this complaint. And the stakes are huge. According to the New York Times, almost half of Google’s search traffic today comes from Apple devices.
According to NYT, losing Google search positioning as the default search engine for iPhones and iPads within the Mountain View company would be seen as a scenario that would scare the company. For its part, Apple would lose a significant source of income.
Google defends its deal with Apple
While Apple didn’t comment on the Justice Department complaint, Google has already posted a blog post to defend its business model.
“Yes, like countless other companies, we pay to advertise our services, just like a grain brand might pay a supermarket to store their products at the end of a row or on a shelf at eye level.” Kent Walker, SVP for Global Affairs, says in this blog post.
“When you first buy a device for digital services, it has a kind of home screen like“ shelves at eye level ”. On mobile devices, this shelf is controlled by Apple as well as companies like AT&T, Verizon, Samsung and LG. On desktops, this space is heavily controlled by Microsoft. “ he adds.
A European scenario?
In other words, Google explains that it will only buy one site like many companies do. However, the critics of the Mountain View company point out that its competitors will never be able to pay the amounts it paid for these locations.
Google also reminds that users do not have to use their digital services and that it is easy for Safari to change the search engine. “The most important thing is that people don’t use Google because they have to, but because they want to. It’s not the 90s when changing services was slow and difficult, and you often had to purchase and install software with a CD-ROM. “writes Kent Walker. The company also warns that the complaint does not protect consumers, but instead could increase the prices of products.
Otherwise, we would like to remind you that Google has already been sanctioned in Europe for the way it advertises its search engine. However, the European Commission has mainly looked at the way Google advertises Google Search and Chrome on Android smartphones. If we are currently activating a new smartphone in the EU, it is recommended that alternatives to Google search be used as the default search engine.