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Did you know that Google and Apple, often seen as rivals, actually work together when it comes to search? In a recent admission, Sundar Pichai, the CEO of Google's parent company, Alphabet, revealed that Google pays a significant amount to be the default search engine on Apple devices.
During a trial unrelated to this collaboration, where Epic Games took on Google, Pichai confirmed that Google gives Apple a substantial 36% share of the advertising revenue generated from searches on iPhones using Safari. This disclosure came to light when a Google expert witness accidentally revealed the information during the antitrust trial in Washington DC.
Interestingly, it seems Google isn't as generous with other partners like Samsung. Pichai suggested that the company pays Samsung less than half of what Apple receives. While not entirely certain, Pichai mentioned the possibility, explaining that deals with Samsung may involve additional factors like carrier payments.
Pichai emphasized that despite these collaborations, Google still competes fiercely with Apple. The company spent nearly $49 billion last year on various partners, including Apple and Samsung, to secure its position as the default search option on devices and browsers.
When questioned about the specific amount paid to Apple each year, Pichai estimated over $10 billion, but Epic's lawyer challenged this, suggesting it could be closer to a substantial $18 billion annually.
Google is currently facing legal challenges on multiple fronts, including two antitrust suits from the Department of Justice and allegations from Epic Games regarding its monopoly over app distribution through the Google Play store. These legal battles highlight the complex landscape of competition and collaboration in the tech industry.
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