Google Reportedly Pays Apple $8-12 Billion Per Year to be Default iOS Search Engine

The United States Justice Department is targeting a lucrative deal between Apple and Google as part of one of the U.S. government's largest antitrust cases, reports The New York Times.

iu

On Tuesday, the Justice Department filed an antitrust lawsuit against Google, claiming the Mountain View-based company used anticompetitive and exclusionary practices in the search and advertising markets to maintain an unlawful monopoly.

In 2017, Apple updated an agreement to keep Google's search engine as the preselected option on Apple devices. The New York Times reports that Apple receives an estimated eight to 12 billion dollars per year in exchange for making Google the default search engine on its devices and services, including the iPhone and Siri. This is believed to be the single biggest payment Google makes to anyone, and it accounts for 14 to 21 percent of Apple's annual profits.

Prosecutors claim that the deal is representative of illegal tactics used to protect Google's monopoly and stifle competition. According to the Justice Department, almost one half of Google's search traffic now comes from Apple devices, and the prospect of losing the agreement has been described as "terrifying" and a "code red" scenario within the company. Google's search traffic is integral to its business model due to its system of ads.

Apple is likewise coming under fire for facilitating anticompetitive behavior by acquiescing to the deal and extracting more money with regular renegotiations. Although the two companies are competitors in Silicon Valley, the agreement is said to be part of "an unlikely union of rivals."

The Justice Department's complaint cites a senior Apple employee's remark from 2018 which said that "our vision is that we work as if we are one company."

The legal intervention poses a threat to a significant chunk of Apple's revenue, but it is a bigger danger for Google, which would seemingly have no way to replace the traffic it would lose. The New York Times speculates that such a breakup could push Apple to acquire or build its own search engine, which could in turn pose an even greater threat to Google.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

Foldable iPhone 2023 Feature 1

Apple to Make More Foldable iPhones Than Expected

Tuesday December 9, 2025 9:59 am PST by
Apple has ordered 22 million OLED panels from Samsung Display for the first foldable iPhone, signaling a significantly larger production target than the display industry had previously anticipated, ET News reports. In the now-seemingly deleted report, ET News claimed that Samsung plans to mass-produce 11 million inward-folding OLED displays for Apple next year, as well as 11 million...
iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
iPhone 14 Pro Dynamic Island

iPhone 18 Pro Leak Adds New Evidence for Under-Display Face ID

Monday December 8, 2025 4:54 am PST by
Apple is actively testing under-screen Face ID for next year's iPhone 18 Pro models using a special "spliced micro-transparent glass" window built into the display, claims a Chinese leaker. According to "Smart Pikachu," a Weibo account that has previously shared accurate supply-chain details on Chinese Android hardware, Apple is testing the special glass as a way to let the TrueDepth...
iOS 26

Apple Seeds Second iOS 26.2 Release Candidate to Developers and Public Beta Testers

Monday December 8, 2025 10:18 am PST by
Apple today seeded the second release candidate version of iOS 26.2 to developers and public beta testers, with the software coming one week after Apple seeded the first RC. The release candidate represents the final version iOS 26.2 that will be provided to the public if no further bugs are found. Registered developers and public beta testers can download the betas from the Settings app on...
Google maps feaure

Google Maps Quietly Added This Long-Overdue Feature for Drivers

Wednesday December 10, 2025 2:52 am PST by
Google Maps on iOS quietly gained a new feature recently that automatically recognizes where you've parked your vehicle and saves the location for you. Announced on LinkedIn by Rio Akasaka, Google Maps' senior product manager, the new feature auto-detects your parked location even if you don't use the parking pin function, saves it for up to 48 hours, and then automatically removes it once...
Johny Srouji

Apple's Chipmaking Chief Johny Srouji Responds to Report About Him Potentially Leaving

Monday December 8, 2025 9:23 am PST by
Apple's chipmaking chief Johny Srouji has reportedly indicated that he plans to continue working for the company for the foreseeable future. "I love my team, and I love my job at Apple, and I don't plan on leaving anytime soon," said Srouji, in a memo obtained by Bloomberg's Mark Gurman. Here is Srouji's full memo, as shared by Bloomberg:I know you've been reading all kind of rumors and...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Monday December 1, 2025 2:40 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
google pixel 10

Switching Between iPhone and Android Will Get Easier With New Apple and Google Collaboration

Monday December 8, 2025 11:10 am PST by
Apple and Google are teaming up to make it easier for users to switch between iPhone and Android smartphones, according to 9to5Google. There is a new Android Canary build available today that simplifies data transfer between two smartphones, and Apple is going to implement the functionality in an upcoming iOS 26 beta. Apple already has a Move to iOS app for transferring data from an Android...
Apple Fitness Plus expansion hero

Apple Fitness+ Coming to 28 New Regions With Digital Voice Dubbing

Monday December 8, 2025 6:19 am PST by
Apple today announced that Fitness+ is expanding to 28 new markets on December 15 in the service's largest international rollout since launch, accompanied by new language dubbing and a K-Pop music genre. Apple Fitness+ will become available in Chile, Hong Kong, India, the Netherlands, Singapore, Taiwan, and additional regions on December 15, with Japan scheduled to follow early next year....
Johny Srouji

Apple Chip Chief Johny Srouji Could Be Next to Go as Exodus Continues

Sunday December 7, 2025 10:41 am PST by
Apple's senior vice president of hardware technologies Johny Srouji could be the next leading executive to leave the company amid an alarming exodus of leading employees, Bloomberg's Mark Gurman reports. Srouji apparently recently told CEO Tim Cook that he is "seriously considering leaving" in the near future. He intends to join another company if he departs. Srouji leads Apple's chip design ...

Top Rated Comments

WannaGoMac Avatar
67 months ago
That's a lot of iphone chargers
Score: 52 Votes (Like | Disagree)
Apple_Robert Avatar
67 months ago
I knew it was a lot of money but, I would have never guessed it was that much.

A privacy centered company using a company that exploits people’s privacy as the default search engine is crazy stuff.
Score: 46 Votes (Like | Disagree)
MacBH928 Avatar
67 months ago
sheesh...$8B just to be the default , not the exclusive search engine!
How much data are they harvesting and selling from just plain searches?!
Score: 45 Votes (Like | Disagree)
Seoras Avatar
67 months ago
Which is why Google created Android. Why pay someone else when you can give a phone OS away for free for less.
They don't care about Android, it isn't their business. They care only about search.
Score: 33 Votes (Like | Disagree)
X--X Avatar
67 months ago

....and folks say Apple is all about privacy
The only thing Apple is all about... is money.
Score: 31 Votes (Like | Disagree)
arn Avatar
67 months ago

Seems like google would lose little traffic but apple would lose a lot of money. (Most people would choose google as their default)
Maybe. But the crazy stat is 50% of google search traffic comes from Apple. Not sure google wants to gamble with that. Most people don’t change defaults.

According to the Justice Department, almost one half of Google's search traffic now comes from Apple devices, and the prospect of losing the agreement has been described as "terrifying" and a "code red" scenario within the company.
Score: 28 Votes (Like | Disagree)