Apple could lose its $20 billion/year Google deal!

TECH NEWS – But this could only be a temporary situation for the Cupertino-based tech company.

 

Earlier, we reported that Google pays Apple $20 billion a year to make its search engine the default on Apple devices, and Microsoft CEO Satya Nadella complained that this gives them an unfair advantage in the market. The situation could change if an antitrust case goes in Google’s favor and ends the agreement between the two companies.

The antitrust case was brought against the Alphabet subsidiary by the US Department of Justice. According to the DoJ, Google is using its power to continue to hold the vast majority of the market. Apple executives were also questioned in the case and asked about the 15 billion that Apple receives from Google in exchange for the basic setup of the search engine. It turned out to be more than 15 billion ($18-20 billion).

The amount is included in Apple’s annual operating profit, and it suggests that Google should not continue this relationship after the verdict, the Apple company would face huge losses… but according to AppleInsider, it is not sure that Apple would really have a problem, because the company could soon set up another partnership with another search engine, so they could team up with Microsoft to take over Google.

Bing would be an interesting alternative, because in 2020, Apple actually discussed with Microsoft about acquiring the search engine, but the discussion did not lead to anything, presumably because of the amount Google offered each year. (That’s probably why YouTube is pushing for premium subscriptions or advertising these days…?) According to Bernstein’s financial report, if the federal court rules against Google, it may be forced to terminate its agreement with Apple, which is ripping off $60 billion in advertising anyway…

So Apple may soon change its default search engine.

Source: WCCFTech

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Anikó, our news editor and communication manager, is more interested in the business side of the gaming industry. She worked at banks, and she has a vast knowledge of business life. Still, she likes puzzle and story-oriented games, like Sherlock Holmes: Crimes & Punishments, which is her favourite title. She also played The Sims 3, but after accidentally killing a whole sim family, swore not to play it again. (For our office address, email and phone number check out our IMPRESSUM)

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