Google Estimated To Be Paying $15 Billion To Remain Default Search Engine On Safari – Forbes

Google Estimated To Be Paying $15 Billion To Remain Default Search Engine On Safari – Forbes

The Safari browser app is seen on an Apple iPhone on October 1, 2018. Apple has demanded that Google … [+] pay 9 billion USD to keep the Google search page the default search engine on Apple iPhones. (Photo by Jaap Arriens/NurPhoto via Getty Images)
The race between Google and Microsoft for placement of their search engines as defaults within Apple’s iOS and macOS continues to heat up. 
Google has drastically increased its payment to Apple for placement as the default search engine on Safari in iOS and macOS, according to a note from Bernstein analyst Toni Sacconaghi. The note was first published by Philip Elmer-DeWitt at Apple 3.0. 
Not only is Google the default search engine for the Safari browser on both platforms, but also on Spotlight searches on Mac and Siri search results. 
Sacconaghi estimates that Google could be paying nearly $15 billion in 2021 for default placement. This is an increase over the roughly $10 billion Google paid last year for the exclusivity. That is a huge increase from the $3 billion Google paid Apple in 2017 to be the default search engine on Safari. 
Sacconaghi previously said Google is likely paying Apple larger sums to ensure that Microsoft doesn’t outbid it. The sum is significant enough, however, to amount for about 9% of Apple’s gross profits. 
Safari and Google Chrome browsers icons are seen displayed on phone screen in this illustration … [+] photo taken in Poland on February 20, 2020. (Photo illustration byJakub Porzycki/NurPhoto via Getty Images)
Google was the original default search engine of the iPhone when the device was first released in 2007. However, in 2012, Bing became the default search engine of iOS and macOS. It switched back in 2017. 
The investment could prove worthy for Google and its parent company Alphabet. While ventures, like Waymo and Google Cloud, have yet to generate any profit, the company’s ad business remains strong. In July, Google reported record-high quarterly revenue and profit, powered by a rise in advertising spending. 
By remaining the default search engine, Google benefits from placing mobile ads on searches and websites visited. But Google faces tough competition from Microsoft’s Bing, both for placement as the default search engine and in the courtroom
Sacconaghi did note that regulatory risks, which may force Apple to remove Google as a default search engine, may be a risk for both companies.

source

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