Google could pay $15 billion USD to stay default iOS search engine
Google is planning to keep continue its status as the default search engine on iOS. To maintain this decision, Google is even willing to pay about 9% of the company’s yearly net profit, says a report.
As per the info, this American search engine will reportedly pay $15 billion in fiscal 2021 to Apple. This sum is higher than previously paid $11 billion in 2020 and $9.5 billion in 2018.
“We have noted in prior research that GOOG is likely paying to ensure Microsoft doesn’t outbid it.”
— As stated by Senior Analyst Toni Sacconaghi
However, nighter Google or Apple has confirmed this deal but figures show an estimated profit of up to 20% of Apple’s annual profits in 2020. As for the $15B investment, it’s derived from Apple’s recent revenue and Google’s TAC (traffic acquisition costs) disclosures.
On the note from Toni Sacconaghi, this big sum is a payment to keep Microsft away from reaching other platforms. The internet search engine is willing to pay any cost to maintain its dominance.
Furthermore, this report points out, Google eliminating the chance for the companies to negotiate with other search engines like Bing, Yahoo, DudckDuckGo, and Ecosia to be the default engine. Meanwhile, it also includes the regulatory risk that could result in a 4-5% collision on Apple’s net earnings.
Besides, if Google is continuing to stand on this policy, it could only end up paying an even higher payment to this iPhone owner. For FY22, this compensation amount to likely to reach $18-$20.
(Via- AppleInsider)
