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Friday, 28 September 2018

Google Reportedly Paying Apple $9 Billion to Remain Default iOS Search Option

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It’s widely known that Google pays Apple a certain amount of money on a semi-regular basis to make sure that it remains the default search engine option on iOS devices.


It has been said in the past that iOS devices equal about 50 percent of Google’s search revenue on mobile devices, so it’s imperative to the company to keep that spot on Apple’s devices. Before the end of 2017 it was reported that Apple was getting upwards of $3 billion from Google to secure that spot. But now, more than a year later from that report, it sounds like the company may be paying a lot more to Apple.


Business Insider is reporting information shared by analyst Rod Hall that states Google is now paying $9 billion this year to retain its default situation on iOS devices. What’s more, Hall actually thinks that number will increase by next year, and Google could be paying Apple for those default rights to the tune of $12 billion. Hall also echoes those earlier reports, saying ““Apple is one of the biggest channels of traffic acquisition for Google”, so it sounds like Google will continue to pay what it needs to in an effort to make sure nothing changes in that regard.


Nothing is official, so we don’t know for sure that Google is paying $9 billion to secure these default rights on iOS devices. However, if that is indeed the case, the price for the spot has indeed been going up year to year. $12 billion is quite a steep price tag, to say the least.


[via Business Insider]

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