Google Pays Apple $20 Billion to Become Safari's Default Search

Google parent Alphabet will pay Apple $20 billion in 2022, according to newly released antitrust court filings. This payment was made to make Google the primary search engine in the Safari browser.

Details of the antimonopoly case

In 2022, Alphabet paid Apple $20 billion to make Google the default search engine. The companies planned to hide the size of the payment. At the trial, which took place in the fall of 2023, Apple representatives confirmed that Google had paid them billions of dollars, but did not specify a specific amount. However, a Google witness later revealed details and noted that the company also pays Apple 36% of revenues received from search advertising.

The agreement with Apple is one of Google's most significant as it brings the search engine to most smartphones used in the United States. The documentation also confirmed the importance of these payments to Apple's profits. In 2020, for example, Google's payments accounted for 17.5% of the iPhone maker's operating profits.

Apple first agreed to use Google for its Safari browser in 2002. However, the two companies subsequently decided to share profits from search advertising. By May 2021, this resulted in Google paying Apple more than $1 billion per month for default.

The tech companies' collaboration is key to a case in which regulators accuse Google of illegally monopolizing online search and related advertising services. The Justice Department and Google will present their final arguments on the matter this week, with a final decision expected this year.

Attempts from Microsoft

Microsoft, which runs rival search engine Bing, has tried several times to partner with Apple. According to court documents, the company was willing to share up to 90% of its advertising revenue with Apple so that Bing would become the main search engine in Safari. And Microsoft CEO Satya Nadella said the company was prepared to make a number of concessions, including the possibility of hiding the Bing brand.