Lawsuit wants Google to stop paying Apple to be the default search engine for its devices.
We have known for a long time that Google pays Apple a millionaire for its search engine to appear by default on devices like the iPhone, iPad or Mac. It is estimated that diffractions reached 15,000 million in 2021 and that it could reach 20 billion dollars in 2022.
However, no company gives the real numbers, all are estimates. But a new class action lawsuit wants the payments between the two companies disclosed because they allege the deal violates antitrust rules.
The complaint accuses Google and Apple of the agreement that Apple would not compete with Google in internet search. […] and requests a court ruling banning the non-competition agreement between Google and Apple
Basically, the lawsuit alleges that Google’s payment of these huge sums to Apple means that the Apple company is not considering launching its own search engine. Something that is Harmful both to competing search companies and companies that serve ads on Google and to users themselvesbecause they will be indirectly harmed as higher advertising costs will result in higher product prices.
Apple and Google, very profitable partners
Featured in a California courthouse earlier this week against Apple, Google and their respective CEOs, the lawsuit alleges that the two companies have a non-compete agreement in the area of Internet research that violates United States antitrust laws.
A trial that can reveal a lot of information
We don’t know if the lawsuit will succeed, although that may clarify what the specific payment Google is making to Apple. This is the largest payment Google makes to a business and could amount to up to one-fifth of Apple’s annual revenue.
Apple and Google would probably argue that payments should remain the default search option for Google, and that users can select other search engines in Safari such as Bing, Yahoo, and Microsoft’s independent DuckDuckGo and Ecosia search engines.
On occasion it has been said about the possibility for Apple to launch its own search engine, something that could completely explode the market. However, the high amount Google pays each year makes the decision difficult. We will see what the judges think.
Related topics: Google
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