Many Apple users have probably wondered why their company, a rival of Google, keeps Google services on its system, especially the search engine. The answer, as usual, boils down to something quite simple: money. According to the analyst firm Bernstein, Google is reportedly paying Apple between 18 to 20 billion dollars to be the primary search engine on their devices.
These figures from Bernstein indicate that Google and Apple might be engaged in anti-competitive behavior, something heavily scrutinized in the United States to prevent monopolies. This alleged agreement between the two companies provides Apple with a sum that constitutes between 14% and 15% of its annual revenue, a significant amount for Apple’s overall earnings.
One of the reasons why this information is so controversial, aside from the staggering amount involved, is that it goes against the free market principles that the United States has always championed. That’s why oligopolies are under strict scrutiny and attention from the competent authorities in the American government.
Furthermore, there are indications, according to analysts, that Google might also be making similar payments to other major companies in the industry, such as Samsung or Mozilla. However, it is estimated that their financial figures do not come close to the exceptionally high amounts involved in the agreement between Apple and Google.
Apple receives a substantial sum thanks to the agreement with Google
Complaint and potential consequences
Apple is currently in the midst of a marketing campaign for its new iPhone 15. However, if a lawsuit forces them to end the agreement, the bitten apple would suffer significant commercial damage, given that the sum represents around 15% of its annual revenue. This is not a remote possibility, as Google is currently under investigation for its monopolistic practices.
Both Apple and Google would face a significant setback if they fail to convince the Department of Justice that their agreement is commercially legitimate and does not harm competition in the market. Nevertheless, this legal battle will be lengthy, and there are still many developments to unfold before a final resolution is reached.