Google Paid Apple $1 Billion in 2014 to be Default iOS Search Engine

[MacRumors]

It's common knowledge that Apple and Google have a monetary agreement that ensures Google's position as the default search engine on Apple's iOS devices, but the details of that deal have been kept under wraps, until now. A recent court transcript from Oracle's copyright lawsuit against Google was obtained by Bloomberg and sheds some light on the agreement, suggesting Google pays out a lot of money to keep its search bar on Apple's iPhones and iPads.

Apple receives a percentage of the revenue that Google earns from searches made on iOS devices, and in 2014, Apple's payout from Google totaled $1 billion. That information mirrors a similar rumor from 2012 that also suggested Google was paying Apple upwards of $1 billion.

The current cut Apple receives from the advertising revenue Google collects isn't known, but according to a Google witness questioned during the Oracle-Google lawsuit, the revenue share was at 34 percent "at one point in time." According to Bloomberg, it was not made clear in the transcript if 34 percent is the amount Apple received or the amount Google got to keep.

An attorney for Google objected to the information being disclosed and attempted to have the judge strike the mention of 34 percent from the record.
"That percentage just stated, that should be sealed," lawyer Robert Van Nest said, according to the transcript. "We are talking hypotheticals here. That's not a publicly known number."

Both Google and Apple attempted to have the court records blocked from public review because the information is "extremely confidential," but a judge denied the request. Google went on to ask the court to seal the transcript because the release of the information could affect its negotiations with other companies. The company's request was presumably granted, as Bloomberg says the transcript is no longer available.

Apple and Google's search contract was reportedly set to end in 2015, sparking speculation that Apple could terminate the agreement in favor of working with Microsoft or Yahoo. Yahoo and Microsoft were both interested in inking a deal with Apple to overthrow Google as the default search engine on iOS devices, but as no shift to another search engine has been made, it appears Google and Apple may have established a renewed agreement.

In a May 2015 interview, Google's chief business officer Omid Kordestani said Google wanted to continue its partnership with Apple. "We'd love to continue our partnership with them and doing our best to work with them, and that's all I can say for now," he said.

Article Link: Google Paid Apple $1 Billion in 2014 to be Default iOS Search Engine

 

[OldSchoolMacGuy]

Not surprising at all. Google makes almost double off of every iPhone user compared to Android users. Keeping them using Google search means billions in revenue for Google and is well worth the price paid.

 

[iLoveiTunes]

Wow.... Just wow

 

[2010mini]

Wow.... Jeez how much did Google make?!??

 

[Tubamajuba]

Should Apple ever opt out of renewing this deal, I would be willing to negotiate similar fees to make Google my default search engine.

 

[TMRJIJ]

Money works, everyone.

 

[maxsix]

I would like to see Apple set their ego aside and use Google as the default search engine. Give us all Google Apps and services preloaded. That would save me from having to install all that each year when I get a new iPhone. I have enjoyed the enhanced performance and functionality of my iPhones and Android phones thanks to Google. They've done a lot for mobile computing and communications.

 

[The Barron]

Big whup! If other search engines want to pony up more, then go for it. Hey, it's Apple here!

 

[dalthicks]

Weird thought - would Apple ever consider having their own search engine? I know that it's easy to use a well established company like Google for this task. But is it within reason for Apple to ever do something like this?

 

[iJandro]

It's quite amazing indeed...

 

[Abazigal]

I would like to see Apple set their ego aside and use Google as the default search engine. Give us all Google Apps and services preloaded. That would save me from having to install all that each year when I get a new iPhone. I have enjoyed the enhanced performance and functionality of my iPhones and Android phones thanks to Google. They've done a lot for mobile computing and communications.

I use my fair share of Google's services but not their apps directly, so I have no interest in having their apps preloaded on my phone. Not all their iOS apps are that fantastic. For instance, I use Protube over Youtube because it blocks ads and has a number of features Youtube hasn't implemented yet, such as PIP, split-screen multitasking and Background audio streaming.

And after seeing how Google screwed us iPhone users over with Maps for so long, I am using Maps over Google Maps for as long as Maps still meets my needs.
[doublepost=1453432802][/doublepost]

Weird thought - would Apple ever consider having their own search engine? I know that it's easy to use a well established company like Google for this task. But is it within reason for Apple to ever do something like this?

Considering that Apple gave up iAds recently, I doubt it. They lack the scale and the expertise and I don't see how Apple would monetise it. I could see Apple buying DuckDuckGo but I have used it a few time and the search results really suck.

 

[GUILTIE]

Give us all Google Apps and services preloaded.

I sincerely hope you are joking.

 

[neutralguy]

Weird thought - would Apple ever consider having their own search engine? I know that it's easy to use a well established company like Google for this task. But is it within reason for Apple to ever do something like this?

I assume you have no idea about how a search engine built. If you notice, even the Yahoo and Bing can't hold a candle next to Google.

 

[glindon]

I would like to see Apple set their ego aside and use Google as the default search engine. Give us all Google Apps and services preloaded. That would save me from having to install all that each year when I get a new iPhone. I have enjoyed the enhanced performance and functionality of my iPhones and Android phones thanks to Google. They've done a lot for mobile computing and communications.

Google can't even deliver a competent version of YouTube, let alone Docs, sheets, etc. for iPad.

And trade all my privacy for their "free" stuff?

Thankfully Apple includes their own apps so I don't need Google for anything except an occasional YouTube video.

 

[Traverse]

That's just pocket change!

 

[xmichaelp]

Should Apple ever opt out of renewing this deal, I would be willing to negotiate similar fees to make Google my default search engine.

Why? There's nothing special about Google. I switched to Bing recently and actually prefer it.
[doublepost=1453433077][/doublepost]

I would like to see Apple set their ego aside and use Google as the default search engine. Give us all Google Apps and services preloaded. That would save me from having to install all that each year when I get a new iPhone. I have enjoyed the enhanced performance and functionality of my iPhones and Android phones thanks to Google. They've done a lot for mobile computing and communications.

*throws up*

No thanks. Most people don't load all that crap on their iPhones anyways.

 

[sinsin07]

I would like to see Apple set their ego aside and use Google as the default search engine. Give us all Google Apps and services preloaded. That would save me from having to install all that each year when I get a new iPhone. ...snip

You can save even more time by just purchasing an Android device.

 

[xmichaelp]

I assume you have no idea about how a search engine built. If you notice, even the Yahoo and Bing can't hold a candle next to Google.

You probably have no idea how it's built either

 

[Narrator Jack]

It'd be something if Apple paid Google the billion.

 

[dalthicks]

I assume you have no idea about how a search engine built. If you notice, even the Yahoo and Bing can't hold a candle next to Google.

Oh I know that yahoo and Bing can't compete with Google. I was just seeing if it was possible that Apple would try and jump in on it. Because I have no idea about that field.

 

[kiancheong]

Imagine if Apple removed them from being an option. How much money would the Global Surveillance Company lose. More than a billion is what I think it will be.

 

[DUCKofD3ATH]

It's common knowledge that Apple and Google have a monetary agreement that ensures Google's position as the default search engine on Apple's iOS devices, but the details of that deal have been kept under wraps, until now. A recent court transcript from Oracle's copyright lawsuit against Google was obtained by Bloomberg and sheds some light on the agreement, suggesting Google pays out a lot of money to keep its search bar on Apple's iPhones and iPads.

Apple receives a percentage of the revenue that Google earns from searches made on iOS devices, and in 2014, Apple's payout from Google totaled $1 billion. That information mirrors a similar rumor from 2012 that also suggested Google was paying Apple upwards of $1 billion.

The current cut Apple receives from the advertising revenue Google collects isn't known, but according to a Google witness questioned during the Oracle-Google lawsuit, the revenue share was at 34 percent "at one point in time." According to Bloomberg, it was not made clear in the transcript if 34 percent is the amount Apple received or the amount Google got to keep.Both Google and Apple attempted to have the court records blocked from public review because the information is "extremely confidential," but a judge denied the request. Google went on to ask the court to seal the transcript because the release of the information could affect its negotiations with other companies. The company's request was presumably granted, as Bloomberg says the transcript is no longer available.

Apple and Google's search contract was reportedly set to end in 2015, sparking speculation that Apple could terminate the agreement in favor of working with Microsoft or Yahoo. Yahoo and Microsoft were both interested in inking a deal with Apple to overthrow Google as the default search engine on iOS devices, but as no shift to another search engine has been made, it appears Google and Apple may have established a renewed agreement.

In a May 2015 interview, Google's chief business officer Omid Kordestani said Google wanted to continue its partnership with Apple. "We'd love to continue our partnership with them and doing our best to work with them, and that's all I can say for now," he said.

Article Link: Google Paid Apple $1 Billion in 2014 to be Default iOS Search Engine

We dodged a bullet! Can you imagine having to use Marissa Mayer's Mess that is Yahoo!?

 

[NovemberWhiskey]

How is this legal?

 

[vertsix]

Even if it wasn't the default, many people would switch back to Google and set it as the default themselves.

Google is just the superior search engine. Not the most private, but the most reliable one.
[doublepost=1453434034][/doublepost]

How is this legal?

How would it not be legal? It's a standard negotiation.

 

[kdarling]

Yep, Apple has made billions over the years by sharing Google's ad revenue, made possible by Apple selling access to its iOS users.

Tim Cook and his hypocritical "you are not our product" line, reminds me of Captain Renault in the movie Casablanca, when he orders Rick's bar to be shut down:

Captain: "I'm shocked, shocked, to find that there is gambling going on here!"

Waiter: "Here's your share of the winnings, sir."

Captain: "Ooo, thank you!", pockets money.