Because the Justice Division’s antitrust trial in opposition to Google unfolds, we’re studying extra in regards to the secretive settlement between Apple and Google over Safari’s default search engine. It seems Google provides Apple a 36% minimize of its search advert income generated via Safari.
Bloomberg reported the element that was disclosed right this moment by College of Chicago professor Kevin Murphy, who’s “the principle economics professional” for Google.
As for why Apple is so concerned within the DOJ’s antitrust case in opposition to Google, it’s as a result of the iPhone dominates smartphones within the US, and Google pays Apple upwards of $20 billion yearly to be the default search engine on Apple’s Safari browser.
The argument in opposition to Google is that by paying Apple to stay the default search engine, competing serps haven’t any probability to develop and really be aggressive.
There’s additionally an argument to be made that Google incentivizes Apple to not compete in search via its default search engine and advert sharing association. For Apple, the deal simply makes up greater than 10% of its earnings.
Whereas clearly worthwhile for Apple, the deal has additionally put Apple management within the awkward place of needing to defend the corporate it paints as anti-privacy.
Apple fees Google 36% of search advert income? Gee, that makes the 30% Apple takes from builders appear downright beneficiant.
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