Google continues to pay Apple billions of dollars to prevent users from using… Bing?

We’ve known for a long time that Google pays Apple a hefty sum each year to ensure that Google remains the default search engine on iPhones, iPads, and Macs. Now, a new report from analysts at Bernstein suggests that payments from Google to Apple could reach $15 billion in 2021, up from $10 billion in 2020.

That number comes from Bernstein analysts, who say Google will continue to surpass that level to maintain its position on Apple devices. The amount is likely to grow to around $20 billion by 2022. Those estimates are based on both companies’ latest financial documents, and unless something substantial changes next year, Google is likely feature will continue to pay billions of dollars to stay ahead and be the center of search for iOS users.

Jane Horvath, Apple’s senior director of global privacy, said earlier this year that the company defaults to using Google because it’s the most popular search engine. However, Safari allows you to switch from Google to another search engine if you want.

It seems that Apple and Google have a symbiotic relationship as a result of this deal. The large payout from Google is believed to have gone to Apple’s Services division, which has helped Apple increase revenue over the years. That’s helpful because Apple has diversified its business beyond hardware.

Considering that Google is under a string of “monopoly” accusations, analysts note that the deal could be seen as a legal risk. If this is seen as evidence of Google’s anticompetitive practices, Bernstein analysts estimate it could result in a 4-5% drop in total revenue for Apple. Google could also decide to stop paying Apple altogether, but analysts believe that won’t happen because Google “will continue to pay to make sure Microsoft doesn’t outbid.”

Google still makes most of its money from advertising revenue. The company, which posted record profits of $61.9 billion, led by search, has earned the company $7 billion, but it’s still unclear exactly how much Safari contributes to Google’s profits and whether the payments are made. billions of dollars for Apple is really worth it, when the alternative is… Microsoft Bing, which is not popular with users.

Reference: Gizmodo