US v. Google: Google paid Apple $20B in 2022 to be the default search engine in Safari; in 2020, Google's payments constituted 17.5% of Apple's operating income
The deal between the two tech giants is at the heart of the landmark case, in which antitrust enforcers allege Google …
The disclosed $20 billion payment gives enforcers a specific measure of the economic value Google assigns to retaining Safari’s default-search position.
Apple’s reliance on the arrangement is made more visible: the reported 2020 contribution equaled 17.5% of its operating income, tying a meaningful portion of earnings to Google’s distribution spending.
Second-order effects
Search rivals face a clearer illustration of the capital required to compete for default access, reinforcing the concern that Safari defaults can protect Google’s route to users.
Any constraint on Google’s ability to secure exclusive default placement would force Apple to reassess a high-value revenue stream and could make browser search-choice or distribution terms more consequential.
Third-order effects
The case frames browser defaults as a competition bottleneck rather than a routine commercial setting: control of the user entry point can determine which search service receives demand at scale.
If regulators continue to scrutinize such payments, platform owners may retain monetization power while facing tighter limits on exclusivity, shifting competition toward non-exclusive distribution and user choice.
The trend: Search competition is increasingly being contested through control of default distribution channels, not only through the quality of search results.
With all of the layoffs and transfer of core technology jobs to cheaper countries, I'm convinced Google management doesn't think their engineering teams matter. They simply need to cut Apple a bigger check each year to ensure they maintain default status and profits roll in. [ima…
Google makes so much money on top of the $20bi they give Apple to be the default search engine. When @OpenAI 's ChatGPT announcement sent Google stock plummeting so many of us who watched Google steal Android's IP from Apple celebrated. Apple should have quit accepting stipends…
There is a report going around Apple is going to facilitate blocking of ads in Safari - it deserves your attention. Meanwhile, I want to connect dots w/ a number of redactions lifted (yellow) late last night in the post-trial docs of US v Google - closing arguments are tmw. /1 [i…
Loved that email. Almost as if a top executive at a trillion dollar company was deliberating what would scare the monopolist enough to raise its revenue share (learned last night to be 40% rev share contributing nearly 20% of Apple's profits) rather than enter the market.
It's critical to understand the importance of Safari to their Google deal under microscope. It's reasonable to say Safari delivers nearly 20% of Apple's Income from Ops almost entirely subsidized by Google. Without Safari, there is no Google deal. /2 [image]