Alphabet paid $20 billion to Apple to maintain its status as the default search engine

Alphabet paid $20 billion to Apple in 2022 to maintain its status as the default search engine on Safari, Apple’s web browser. As per a report by Bloomberg, the amount Google paid in 2021 was around $15 billion.

The numbers were disclosed through documents which are a part of the US Department of Justice’s antitrust lawsuit against Google. One of the main premise of the antitrust case is how Google’s deal with Apple has monopolised online search business.

The amount paid by Google to Apple has increased in the last couple of years. It was $15 billion in 2021 and the recent increase shows the growing importance of maintaining a default position in a world where search engines drive significant advertising revenue — especially for Google, as per rpeorts.

Apple does give users a choice to change the search engine on all of its devices. There are options like Bing, DuckDuckGo available to users. However, by default, Google Search is set as the primary search engine in Safari on iPhones, iPads and Macs. Google does get a readymade vast customer base as Apple has billions of activated devices.

The deal also highlights the competitive landscape of the tech industry, where companies like Microsoft have attempted to negotiate similar agreements with Apple, albeit unsuccessfully. In fact, it was reported that Microsoft wanted to sell Bing to Apple. The DOJ has argued that the deal stifles competition and give an unfair advantage to already dominant players in the market.