Google coughs up $15 billion to Apple to stay as default search engine

Google paid $10 billion to continue being the default search engine on Apple iOS in 2020, and now they'll pay $15 billion in 2021.

52 seconds read time

Did you know Google paid $10 billion to Apple in 2020 to stay on as their default search engine? If you didn't, it should blow your mind 50% more knowing that Google is paying $15 billion to Apple in 2021 to continue as the default search engine on the iPhone, iPad, and Mac.

Google coughs up $15 billion to Apple to stay as default search engine 10

In a new investor note seen by Ped30, Bernstein analysts estimate that Google will be paying Apple a huge $15 billion in 2021 to remain as the default search engine... but somewhere between $18 billion and $20 billion for the rights in 2022.

Bernstein analyst Toni Sacconaghi notes that Google is probably splashing the cash to "ensure Microsoft doesn't outbid it". The analysts continue:

"We see two potential risks to GOOG's payments to AAPL: (1) regulatory risk, which we believe is real, but likely years away; we see a potential 4-5% impact to Apple's gross profits from an adverse ruling; & (2) that Google chooses to stop paying Apple to be the default search engine altogether, or looks to renegotiate terms and pay less. We have noted in prior research that GOOG is likely paying to ensure Microsoft doesn't outbid it. That said, with payments likely to approach $18 - $20B in FY 22, it not implausible that Google could revisit its strategy".

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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