As the Justice Department rolls out its antitrust case against Google, we're learning more about the secret agreement. between Apple and Google via the default search engine Safari. It turns out that Google gives Apple 36% of search advertising revenue generated through Safari.
Bloomberg reported details that were revealed by the university today. Chicago professor Kevin Murphy, who is the “top economics expert”; for Google.
As for why Apple is so involved in the US Department of Justice's antitrust case against Google, it's because the iPhone dominates smartphones in the US, and Google pays Apple more than $20. billions of dollars a year to become the default search engine in Apple's Safari browser.
The argument against Google is that by paying Apple to remain the default search engine, competing search engines have no chance to grow and actually be competitive.
There is also an argument that Google is incentivizing Apple not to compete in search through its default search engine and ad sharing mechanism. For Apple, the deal would easily represent more than 10% profit.
While the deal is clearly beneficial for Apple, it has also put Apple management in the awkward position of having to defend a company it portrays as anti-competitive. -privacy.
9to5Mac’s Take
Apple charges Google 36% for looking for advertising income? Gee, that makes the 30% Apple gets from developers seem downright generous.
More
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- Google payments to concerned Apple executives who wanted to use EU legislation.
- Apple makes more profit from the existence of Bing than from the existence of Bing. Bing is doing it, says Microsoft executive.
- Bloomberg: Apple held talks with Microsoft to acquire Bing in 2020.
