Alphabet paid Apple $20 billion in 2022
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The Department of Justice's current antitrust lawsuit against Alphabet reported, that Google paid Apple a staggering $20 billion in 2022 to become its default search engine.
Google's relationships have come under scrutiny during an antitrust lawsuit accusing the company of using its size as an advantage to prevent rivals from entering the search market. One of the biggest questions being raised is how much it is paying Apple, which was previously valued at nearly $20 billion — this figure is confirmed by a new lawsuit.
Despite attempts by Google and Apple to keep the payment confidential, details emerged during the trial through depositions and accidental disclosures. According to a Bloomberg report, court documents revealed that Google paid Apple $20 billion in 2022 to become the default search engine on Apple platforms.
The $20 billion figure did not appear in the Apple or Google documents, but it was confirmed by unclassified testimony. This figure was shared during the trial by Eddie Cue, Apple's senior vice president of services.
Originally a free deal, it turned into a lucrative deal that saw Google paying Apple more than $1 billion monthly by May 2021. In 2020, this figure was 17.5% of Apple's total operating income.
Google paid Apple $20 billion to become the default search engine on iPhone
The document also revealed other figures. Microsoft has attempted to become the default search engine with Bing, offering 90% of advertising revenue. Bing was even put up for sale by Apple in 2020.
These factors are likely decisive in Google's case. Google and the Justice Department will present closing arguments on Thursday and Friday, but a decision won't be made until later this year.
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