Why does Google pay billions of dollars to Apple every year?

© Pexels/Firmbee.com

If Apple has just released its new iPhone 15 and increased the prices of its Apple TV+, Apple Arcade and Apple One subscriptions, the company is not only counting on that to bring money into its coffers.

In reality, the Cupertino company can warmly thank Google. Indeed, the tech giant pays Apple handsomely every year to be Safari's default search engine. An agreement that suits Google and Apple.

The multi-billion dollar agreement of Google and Apple

Today, Google is the search engine by default when you open Safari on your Mac, iPhone, or iPad. But it is not the goodness and generosity of Apple that are at the origin. If Google enjoys a crucial place in Apple's ecosystem, it is because the Mountain View firm spends $18 billion each year.

At least, that's the amount Google paid in 2021 according to the New York Times. It seems that since then, the firm has continued to spend an equivalent amount to maintain its position of choice. In addition to being the default browser, this very lucrative agreement for Apple dissuades the brand created by Steve Jobs from having its own search engine.

200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000

Google's weight in Apple's finances is such that the company quickly ended discussions it had with Microsoft to possibly buy the Bing search engine. Apple is aware that Google would put multiple obstacles in its wheels if the agreement ends. Finally, today, everyone finds more or less their count there. But the “cost of this exchange of good practices” weighs more and more on Google’s shoulders.

Thus, the tech giant should benefit from the new European Union regulations. With the entry into force of the DSA and the DMA, Apple must open its ecosystem, which would make it easier for consumers to use applications like Chrome, Maps or Search rather than the equivalents imposed by default by Apple. In the same vein, Google would have complained about Spotlight, wanting it to be considered as a search engine in its own right.

With new rules of the game in the European Union, Google could free itself of Apple's current financial yoke.

154.8 M reviews

[ ]