Google paid Apple $1 billion in 2014 to retain privileged search position on iOS

Imagine a world where, aside from Windows Phones featuring Bing as their default search engine, both Androids and iPhones would at least offer their users a choice between Google and its counterparts upon setting your device up.

Or how about if iOS products used, say, Yahoo’s services for your initial online search needs? If you’re thinking the company currently dependent on Alphabet would lose hundreds of millions of dollars, you may want to add a couple of zeros.

That’s because, following Android income figures, Google’s ongoing legal war with Oracle has just revealed how much Mountain View paid Cupertino for the two to remain friendly to one another. We’re talking a full billion clams here, and that’s only for 2014.

Yes, one followed by nine zeros in US currency, granted to Apple every year for the favor of keeping that iOS search bar stuck on Google. Of course, anyone can easily change the standard option, and pick Yahoo, Bing or even DuckDuckGo, but both Big G and the tech world’s leading fruit know most people don’t bother.

Ergo, Google can make a boatload of cash from iOS ads, and part with roughly a third of the revenue, according to witness claims that both parties tried really hard to keep under court seal. Ultimately, the “highly confidential” details of the financial agreement made their way to the press, and so, Google might find it difficult to sign similar partnerships in the future without ceding a large chunk of its earnings.

Source: Bloomberg

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About The Author
Adrian Diaconescu
Adrian has had an insatiable passion for writing since he was in school and found himself writing philosophical essays about the meaning of life and the differences between light and dark beer. Later, he realized this was pretty much his only marketable skill, so he first created a personal blog (in Romanian) and then discovered his true calling, which is writing about all things tech (in English).