Google’s $20 Billion Annual Payment to Apple Sparks Antitrust Debate Over Search Engine Monopoly

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Court documents unsealed in the US Department of Justice’s antitrust lawsuit against Google have revealed that the tech giant paid Apple a staggering $20 billion in 2022 to remain the default search engine on iPhones, iPads, and Macs. The revelation has reignited scrutiny over Google’s dominance in the online search market and its exclusive agreements with device manufacturers.

Key Highlights:

The payment was part of a longstanding deal that ensures Google Search remains the default option on Apple’s Safari browser.
Microsoft reportedly offered Apple up to 90% of Bing’s ad revenue to replace Google, but Apple declined, citing Google’s superior search quality.
The $20 billion figure represents nearly 17.5% of Apple’s annual profits in 2020, underscoring the financial significance of the arrangement.

Strategic Context:

The deal has been central to the DOJ’s case, which alleges Google’s practices stifle competition and violate antitrust laws.
Apple executives, including Eddy Cue, testified that the company chose Google based on performance, not just financial incentives.
Microsoft’s failed attempts to replace Google highlight the challenges faced by competitors in gaining market share.

Market Outlook:

If the court rules against Google, it may be forced to terminate its agreement with Apple, potentially reshaping the search engine landscape.
Analysts warn that such a move could impact Google’s ad revenue and Apple’s services income, with ripple effects across the tech ecosystem.

Sources: Bloomberg, Times of India, MacRumors, Moneycontrol, Cult of Mac (July 2025)

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