rt: Google shares Chrome iOS search revenue from Apple
According to a report by The Register, Google pays Apple a portion of the revenue it generates from Chrome search traffic.
Revenue share reveal. A 356-page report was published June 10, 2022. There was a key redaction.
Google pays Apple an equal share of search revenue from iOS browser traffic in the following situations: In return for Safari’s default search provider, Google pays Apple revenue from Safari search traffic. And, pursuant to commercial agreements, Google also pays Apple revenue from [redacted] searches traffic.
According to The Register, the redacted word was “Chrome”. It was also removed from another section in the CMA’s report.
These agreements allow Apple to receive a substantial share of the revenue generated by Google Search traffic on Safari, and [redacted] for iOS devices. Google paid a significant amount to Apple to obtain search default status on Safari (PS[1-1.75] billion in total in 2021 for UK), which was significantly more than the payments made to Samsung, its second largest partner. This payment is likely to reflect Apple’s strong position in browsers (and other access points for search) and browser engines (through WebKit).
Why do we care? We’ve all heard rumors that Apple would finally launch its own search engine to rival Google. It hasn’t happened. This could be either a -or the reason. Google is essentially paying Apple to not become a search rival and both are keeping their status quo.
Maintaining dominance? There is no doubt that Apple and Google have a mutually beneficial relationship. There’s more to the story about how important this relationship is in this antitrust suit. It alleges:
Apple devices accounted for more than 50% of Google’s search traffic.
Apple devices were a significant threat to Google because they account for more than half of Google search traffic. Google designated this threat as “Code Red.”
Google paid Apple billions of dollars and agreed to share its earnings with Apple in order to end the threat and fear surrounding Apple as a competitor.
Google saw Apple’s aspect as a potential rival to be “Code Red.”
Google would have lost half its business if Apple were to compete in the search market.
This is not a new concept. Google has spent billions of dollars to Apple over the years to be the default search option for Apple devices. The $1 billion deal was eventually worth $15 billion per year to Apple.
In previous years, we covered the evolution and impact of the Google-Apple deal on search.
- 2010: Google & Apple Expand Search Deal, Emerge as “Frenemies”, Not “Froes”.
- 2013: A Financial Analyst Confirms Google’s $1 Billillion in “Default Search” Payments to Apple
- 2016: Court Documents show that Google paid $1 Billion to Apple for Safari Default Placement
- 2017: Analyst – Google’s default search agreement worth $3 billion to frenemy Apple
- 2018: Report: Google to Pay Apple $9 Billion to Remain the Standard Search Engine on Safari
Read the story. What Britain’s watchdog redacted: Google gives Apple a cut of Chrome iOS search revenues by Thomas Claburn.
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