It was previously discovered that Google enticed Apple with a $20 billion deal that allows the search engine to remain the default on its millions of devices. Microsoft CEO Satya Nadella even spoke of this partnership at a testimonial, believing that it gives the technology giant an unfair advantage in the market, but it is possible that this alliance might be coming to an end, assuming that an antitrust trial ends up going against Google’s favor.
The deal is not expected to affect Apple as it can easily partner with another company to make its search engine that default one
Google is currently grappling with an antitrust case introduced by the Department of Justice, where the company is allegedly being accused of using its power to assert dominance in the market. Apple executives were called as witnesses and were questioned regarding the $15 billion amount that Google pays to the company to keep the search engine as default. It was believed that $15 billion was the amount given to Apple, but it turns out that the figure is estimated to be between $18-20 billion in annual payments.
The aforementioned amount actually accounts for Apple’s annual operating profits, suggesting that should Google not be allowed to continue its partnership, it would deal a massive blow to the California firm’s earnings. Fortunately, as reported by AppleInsider, it is unlikely that the lack of Google’s involvement will financially harm Apple, as it can just as easily form a partnership with the likes of Microsoft and keep Bing as the default search engine.
Speaking of Bing, an earlier report stated that Apple was in talks of acquiring Bing back in 2020, but the conversation never passed a certain point, and it was likely thanks to the lucrative sum that Google was giving to Apple annually. A Bernstein financial report has mentioned that a possibility exists in which the federal courts rule against Google, forcing it to terminate its partnership with Apple.
The report also mentions that Apple will not be losing out if Google can no longer pay the former, as the financial report dives into Apple’s $60 billion earnings in advertising revenue and will continue to do so going forward.
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