Google to pay some US$15bil to stay as default search engine for iPhones, Macs


Google used to be the default search engine on the iPhone when the device first launched in 2007. In 2012 Bing became the default search engine on iOS and macOS only to be replaced by Google in 2017. And that’s how things have remained since. — AFP Relaxnews

Google and Microsoft have both been racing to place their search engines as default on both iOS and macOS and the competition is heating up.

According to reports, Google has drastically increased its payments to Apple to place it as the default search engine on Safari in iOS and macOS. This information comes via a note from Bernstein analyst Toni Sacconaghi which was first published by Philip Elmer-DeWitt at Apple 3.0.

Not only is Google the default search engine on the Safari browser on iPhones and Macs, but it is also the default option on Spotlight searches on Mac and Siri search results.

According to Sacconaghi, Google could be paying nearly US$15bil (RM62.53bil) in 2021 for this default placement. This is an increase over the US$10bil (RM41.69bil) the company paid last year for this same exclusivity. This is also a massive increase from the US$3bil (RM12.50bil) Google paid in 2017. The analyst is of the opinion that Google is likely paying larger sums to Apple to ensure that Microsoft does not outbid it. And this US$15bil (RM62.53bil) sum is significant enough to amount for almost 9% of Apple's gross profits.

Google used to be the default search engine on the iPhone when the device first launched in 2007. In 2012 Bing became the default search engine on iOS and macOS only to be replaced by Google in 2017. And that’s how things have remained since.

This investment is important for Google and parent company Alphabet and profitable too. Other ventures like Waymo and Google Cloud are yet to generate any profit for Alphabet, but the ad business is running strong. In July this year, Google reported record-high quarterly revenues and profit powered by the rise in advertising spending.

As long as Google manages to remain the default search engine on Apple’s platforms, it benefits from placing mobile ads on searches and websites visited. However, Google faces a tough fight from Microsoft’s Bing for being the default search engine, and that's not all.

The fight runs into the courtroom as well. Also, the regulatory risks involved might force Apple to remove Google as a default search engine and might also apply to Microsoft as well. – Hindustan Times, New Delhi/Tribune News Service

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Browsers , search engine

   

Next In Tech News

JetBlue CEO warns 5G flight disruptions may 'stress' U.S. aviation
US tornado victim’s family sues Amazon over warehouse collapse
Key U.S. lawmakers urge AT&T, Verizon to delay some 5G deployments
Activision says it fired dozens over harassment allegations
S’porean teen learnt to drive on YouTube and used dad’s particulars to rent and drive cars
Major U.S. airline CEOs warn 5G could ground some planes, wreak havoc
Twitter expands feature allowing users to flag misleading tweets
Dutch consumer watchdog to vet Apple dating app payment reforms
Gulf Energy, Binance announce Thailand crypto partnership
Spain moves to rein in crypto-asset advertising

Others Also Read


Vouchers