Photo by Alex Dudar on Unsplash | Photo by Laurenz Heymann on Unsplash
Alphabet CEO Admits That Google Pays Apple 36% of Safari Search Revenue
November 15, 2023
Alphabet CEO Sundar Pichai has recently acknowledged that Google pays Apple a substantial 36% of its Safari search revenue. This default search agreement lies at the heart of the Justice Department’s ongoing antitrust allegations against Google.
Google had not publicly disclosed its revenue-sharing agreement with Apple until Monday, when Kevin Murphy, an economics professor from the University of Chicago, inadvertently revealed it in court, according to CNBC. Murphy was testifying on Google’s behalf and answering questions from Alphabet’s lead attorney during the antitrust proceedings in Washington, D.C., when he shared the information.
Alphabet is currently facing multiple legal battles, including two suits from the Justice Department in Virginia and Washington, D.C., regarding the company’s “allegedly anticompetitive behavior.” Fortnite creator Epic Games is also suing Alphabet, alleging that “the company maintained an illegal monopoly with its Google Play store. Epic filed a similar suit against Apple but lost in federal appeals court in April.”
Pichai’s confirmation came during his testimony in a distinctive lawsuit lodged by Epic Games against the tech giant. During the trial, Pichai was quizzed by an attorney representing Epic Games about the accuracy of the disclosed payment rate. In response, the Alphabet CEO confirmed it was true.
Further allegations were made by Epic’s attorney, asserting that Google’s payment to Samsung, the top Android hardware ally, is less than half of what it shells out to Apple. While Pichai didn’t confirm the specifics, he conceded that it’s a plausible scenario.
Google has been known to pay extravagantly to secure its status as the default search engine on various browsers like Safari and Firefox. This hefty privilege cost Google a whopping $26.3 billion in 2021, with a significant slice, $18 billion, being paid to Apple. However, the intricate breakdown of this astronomical sum has been kept under wraps until now.
Addressing similar issues in September, Apple’s Eddy Cue defended the deal between the two tech giants. He disclosed that Apple had initially expected a larger share of the revenue that Google garners from Safari traffic. Still, they eventually settled on the lower figure that Murphy brought to light. Although exact numbers were deliberated upon that day, the specifics were discussed behind closed doors, away from prying media ears.
In 2019, the U.S. Justice Department launched an investigation into Google’s alleged search monopoly, backed by 50 U.S. attorneys general. The charges filed post-investigation claimed that Google was utilizing anticompetitive tactics to maintain its dominance. The trial commenced on Sept. 12, shedding light on the complex interplay of power, money, and influence among tech powerhouses like Google and Apple.
Recent News
Media Giants Depend on Sports As Content Shortages Rise
As Hollywood emerges from last year’s strikes, major media companies are turning to live sports to attract audiences and advertisers. This trend was evident during this year’s Upfront presentations, where media giants showcased their upcoming content and advertising opportunities.
New Trader Joe’s Opens in SF After 10 Years
San Francisco’s Hayes Valley neighborhood welcomed a highly anticipated new addition on May 17, 2024, with the grand opening of a Trader Joe’s at 555 Fulton St., on the corner of Laguna Street. This event marks the end of a decade-long wait for residents who have been eagerly looking forward to a new grocery store in their area.
China’s Property Market Boost: Stocks Surge, Copper Hits Highs
The Chinese government unveiled a comprehensive support package that has sent ripples through financial markets. This initiative includes a slew of measures aimed at stimulating housing demand and addressing the excess inventory burdening developers. The immediate impact was a significant rally in Chinese stocks and a surge in commodity prices, notably copper, which hit record highs.
Mercedes-Benz Workers in Alabama Reject Union
In a pivotal moment for autoworkers in the southern United States, employees at a Mercedes-Benz plant in Alabama have voted against joining the United Auto Workers (UAW) union. The outcome, with 56% of workers voting against unionization and 44% in favor, comes as a significant setback for the UAW’s efforts to expand its influence in the region.