Apple’s search revenue deal with Google does quite well for the iPhone maker, according to court witness testimony. Apple is said to receive about 36% of the revenue Google generates from Safari search result advertising. The testimony came as the Justice Department’s antitrust trial against Alphabet (the parent firm of Google) continues.
Bloomberg reports that Kevin Murphy, a professor at the University of Chicago, told the court that Apple gets in the region of 36% of the revenue for Google searches in the Safari browser, due to the deal to make Google the main search in the browser.
The high percentage isn’t much of a surprise, as it was previously reported that Apple earns in the region of $20 billion per year from search deals.
The DoJ’s case is based on Apple and Google’s long-standing agreement to have Google be the default search engine in Apple’s Safari browser. The agreement has proved to be lucrative for both parties, as Apple benefits from regular payments from the search company, while Google benefits by being the number one used search engine by Safari users.
Apple’s SVP Eddy Cue took the stand in September and told the court that Google is the default search for a few reasons, including that it was “the best” option for consumers.
Meanwhile, Kenneth Dintzer, DoJ Deputy Branch Director, said in his opening remarks in September “Defaults are powerful, scale matters and Google illegally maintained a monopoly for more than a decade.”
The lengthy trial is heading towards its closing stages.
(Via AppleInsider)
