Newly released court documents have revealed that Google paid Apple a staggering US$20 billion in 2022 to secure its position as the default search engine on Safari. This partnership has significant financial implications, representing between 14% and 16% of Apple’s annual operating profits.
Google’s role as the default search engine on Safari dates back to 2002, with both tech giants frequently renegotiating this lucrative deal. Typically shrouded in secrecy, the specifics of these agreements have surfaced due to Google’s ongoing antitrust litigation with the US Department of Justice, providing a rare glimpse into the strategic financial decisions behind their partnership.
While the Digital Markets Act in Europe has prompted Apple to offer users a choice in default browsers and search engines, Google remains the default in many other countries. Apple has made strides in user customisation with iOS 14, introduced in 2020, allowing users to select their preferred services for email and web browsing directly from the settings menu.
With a ruling on the antitrust case expected in the latter half of the year, Apple is reportedly laying the groundwork for its own search engine, potentially ending Google’s long-standing default status. This move could significantly alter the landscape of internet search functionality on Apple devices.
