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Google continues to pay Apple a fair amount to keep its default search engine position


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Google continues to pay Apple a fair amount to keep its default search engine position

Even though Google and Apple have a rivalry in the smartphone market, the default search for iOS is set to Google. This is achieved by a success fee contract, Google1 billion dollars a year as of 2014 (about 119 billion yen at that rate),As of 2017, 3 billion dollars per year (at that time rate, about 330 billion yen)However, the latest report as of 2020 shows that the payment amount is increasing.

Online platforms and digital advertising market study-GOV.UK
https://www.gov.uk/cma-cases/online-platforms-and-digital-advertising-market-study


Appendix H: default positions in search
(PDF file)https://assets.publishing.service.gov.uk/media/5efb1d9ad3bf7f7693924235/Appendix_H_-_search_defaults_v.6.pdf

UK regulators take aim at Apple's search engine deal with Google-Reuters
https://www.reuters.com/article/us-apple-google/uk-regulators-take-aim-at-apples-search-engine-deal-with-google-idUSKBN242748

This report is from EnglandGovernment digital servicesAlthough the numbers and wording of confidential information are hidden, the total payment made by Google for search traffic generated in the UK in 2019 is £ 1.2 billion (about 160 billion yen) Is shown.

Google makes payments for mobile phone carriers, device makers, third-party browsers, OSs, etc. under a success-reward-type contract, subject to "setting Google as the default search engine". The bulk of that payment comes from Apple.

Below is a graph showing the changes in the payment amount. Dark areas indicate payments related to desktop terminals, and light colors indicate payments related to mobile terminals. It is obvious that the amount paid to Apple, which is overwhelmingly higher than that for the Android area, is increasing year by year.

A government digital service that has compiled a report on such a situation points out that the search engine market competition is hindered by the partnership between Google and Apple, and “displays a selection screen that allows users to select a default search engine'' It should allow regulators to implement measures such as “seeking”.

In addition, Microsoft has signed the same contract as Google with many companies in order to make Bing the default search engine.

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