Google pays Apple 36% of ad revenue in Safari
Reportedly, Google pays Apple 36% of ad revenue in Safari. The figure, which should have been kept secret was revealed by Kevin Murph, an economics professor at the University of Chicago while testifying on behalf of Alphabet at the ongoing Justice Department trial in Washington on Monday (13/11).
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| Google and Alphabet Inc. CEO Sundar Pichai arrives at the federal courthouse in Washington, Monday, Oct. 30, 2023. (Photo: Jose Luis Magana | AP) |
The figures shed further light on the relationship between the world's two biggest tech companies Google and Apple, which have come under antitrust scrutiny in recent years.
36% of Total Ad Revenue, Most Likely to be Tens of Billions of Dollars
The Department of Justice (DOJ) has accused Google of using its vast resources to maintain market dominance by paying companies like Apple which owns iPhone, iPad, and Mac devices with billions of users to become the default search engine in Safari.
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In 2021, it was reported by the New York Times that Google had paid Apple around USD 18 billion, or around IDR 278 trillion to be a search engine in Safari by default.
Last week, Google and Apple raised objections to publishing details of their deal. Google said that publishing more details would unreasonably damage Google's competitive position with other competitors and counterparties in court filings.
It's unclear how much ad revenue Google generates from Safari, but it can be assumed that 36% of that number is most likely tens of billions of dollars.
In 2022, Google's total revenue was USD 279.8 billion, and most of it came from advertising. Unfortunately, Google and Apple are reluctant to respond to this. This was reported by Apple Insider, on Thursday (11/16/2023).