Google pays Apple billions to stop you from using … Bing?

Google seems to have no problem distributing money to ensure that it remains the search engine of choice. Documents showed the company offers financial incentives to smartphone makers to keep its app store front and center, and it pays developers to bring their games to Google Play. The company is also paying Apple a large sum to remain the default in the company’s Safari browser.– this year, it is estimated at around $ 15 billion.

This figure comes from analysts at Bernstein, who’s waiting Google will pay so much maintain status on Apple devices. The amount is expected to grow to around $ 20 billion in 2022. These estimates are based on models found in the latest financial documents available of the two companies. And unless something changes significantly over the next year, Google will likely continue to pay billions. to stay at the forefront for iOS users.

Jeanne Horvath, Apple’s Senior Director of Global Privacy, noted earlier this year that the company uses by default Google, because it is the most popular search engine. And Safari allows you to switch from Google to another search engine if you wish.

It appears that Apple and Google have some sort of symbiotic relationship as a result of this deal. Google’s big win technically falls under Apple’s Services division, who has has undoubtedly helped Apple to increase this revenue line over the years. This is useful, as the company has diversified its business beyond hardware.

Considering that the word “antitrust” floats around Google like a stray fruit fly, analysts note that the arrangement could be viewed as a regulatory risk. If this is taken as evidence of Google’s anti-competitive practices, Bernstein Analysts estimate it would cost Apple a potential 4-5% drop in gross revenue. Google could also decide to stop paying Apple altogether, but analysts believe that won’t happen because Google is “probably paying to make sure Microsoft doesn’t outbid.”

Google still derives the majority of its money from advertising revenue. The company job a record profit of $ 61.9 billion, led by research, which alone made $ 7 billion. But it’s unclear exactly how much Safari contributes to Google’s bottom line, and whether paying Apple billions is really worth it when the alternative is … Bing.