Google is expected to pay Apple $15 billion this year for its search engine to remain the default on Apple’s Safari web browser.
Google seems to have no problem doling out cash to ensure it remains the search engine of choice. Documents have shown the company offers financial incentives to smartphone manufacturers to keep its app store front and center, and it pays developers to offer their games in Google Play. The company also pays Apple a hefty sum to remain the default in the company’s Safari browser—this year, it’s estimated to be about $15 billion.
That number comes from Bernstein analysts, who expect Google will fork over that much to retain its status on Apple devices. The amount is likely to increase to about $20 billion in 2022.
MacDailyNews Take: In March of this year, the Australian Competition and Consumer Commission (ACCC) was reported to have concerns about “choice and competition in internet search and web browsers,” focused on internet browser defaults, including Apple’s default search deal with Google.
So, this deal is obviously a regulatory risk. If trustbusters ever put the kibosh on the deal, Bernstein analysts estimate it would cost Apple a potential 4-5% decrease in gross revenue.