Apple Accepts $1 Billion from Google to Keep Search Engine Default on iPhone

Google may dominate the Internet, but Apple dominates the mobile world. Therefore it’s no surprise that Google had to pay big bucks to continue having its search engine on the iPhone.

Apple’s Savvy Business Deal with Google

Google paid its rival, Apple, $1 billion in 2014 after a copyright lawsuit was brought against Google by the Oracle Corp. Along with the large sum of money, Apple would receive a percentage of the revenue Google generated from iPhone users who used the search engine.

Had the 2014 contract ended in 2015, it would have been possible for Apple to switch their default search engine to Yahoo or Microsoft. Since no change has been made to iOS devices, there’s speculation Apple has likely renewed its contract with Google. This is good news to Google, since approximately 75 percent of Google’s mobile searches come from iOS devices.

Apple vs. Google

For years, people have wondered how much Google must pay Apple to have their search engine as a default on Apple mobile devices, which is why this is such big news. Now, it’s evident that nothing in the business world is low cost or free. Google needs to go above and beyond to put its service in front of the billions who use it every single day.

What’s interesting is the relationship Apple and Google have had over the years. It’s no secret Google and Apple have been at odds for quite some time. Tim Cook, chief executive officer for Apple, even said that Google’s business model was an invasion of people’s privacy and that he didn’t agree with it. Apparently, money talks, and it has convinced Cook maybe it’s not as awful as he once believed.

The Percentage Google Pays?

In addition to the billion dollars, the percentage of revenue Google pays Apple is unclear. During the court hearing January 14, a witness stated the percentage was 34 percent at one time. However, since Google wants this information kept as private as possible, there was a motion to have the percentage removed from record. It ended up being sealed along with a comment that the percentage was only a hypothetical.

No one outside the company knows for sure how much Google pays in exchange for lettting iPhone users to use its search engine. What is known is Google pays dearly to get its service on the most popular mobile device in the world.

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