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Google expected to pay Apple $15 billion to remain default Safari search engine

By Cookie Monster - on 26 Aug 2021, 1:04am

Google expected to pay Apple $15 billion to remain default Safari search engine

Google is expected to pay Apple more than previous years to remain the default Safari search engine.

Based on "disclosures in Apple's public filings and a bottom-up analysis of Google's traffic acquisition costs payments, Bernstein analysts predict that Google will be paying Apple nearly $15 billion this year which is a sharp increase from $10 billion in 2020. The amount is forecasted to hit between $18 billion and $20 billion in 2022. The analysts believe Google is paying higher amounts to keep Microsoft at bay.

However, Google's deal with Apple may come under regulatory scrutiny in the next few years and an adverse ruling could result in 4 to 5% impact on Apple's gross profits. In addition, Google may renegotiate terms with Apple and pay less. 

Google reportedly paid Apple $9 billion in 2018 and $12 billion in 2019. Analyst Rod Hall claimed that "Apple is one of the biggest channels of traffic acquisition for Google." Nonetheless, Apple is rumoured to be developing an alternative to Google Search as there are "frequent" job ads for search engineers and increased activities from Apple's web crawler.

Source: ped30 via 9to5Mac

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