Apple Reaps Rich Rewards from Google Search Deal – 36% of Revenue!
On Monday, the primary economics expert for Alphabet Inc. revealed that Google gives Apple Inc. a 36% share of the revenue generated from search advertising on the Safari browser.
Kevin Murphy, a professor at the University of Chicago, revealed the number while testifying in Google’s defense at the Justice Department’s antitrust trial in Washington.
John Schmidtlein, Google’s general counsel, visibly flinched when Murphy said the number was supposed to remain confidential.
Both Google and Apple resisted releasing the details of the deal. Google argued in a court filing last week that disclosing more information about the deal would “unreasonably weaken Google’s competitive position relative to competitors and other counterparties.”
The companies have had a partnership since 2002, making Google the default search engine for Apple’s Safari. Today, that deal is the most important of Google’s default offerings because it puts the search engine on the iPhone, the most used smartphone in the United States.
The Justice Department is targeting the deal because Google illegally maintains its dominant position in the search engine and search advertising markets.
Apple did not immediately respond to a request for comment. Google declined to comment.
