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

iPhone Pocket Short

iPhone Pocket is Now Completely Sold Out Worldwide

Tuesday November 25, 2025 7:16 am PST by
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. However, it is now completely sold out in all countries where it was released. iPhone Pocket became available to order on Apple's online store starting Friday, November 14, in the United States, France, China, Italy, Japan, Singapore, ...
Netflix Smaller 4

Netflix Kills Casting From Its Mobile App to Most Modern TVs

Monday December 1, 2025 4:36 am PST by
Netflix has quietly removed the ability to cast content from its mobile apps to most modern TVs and streaming devices, including newer Chromecast models and the Google TV Streamer. The change was first spotted by users on Reddit and confirmed in an updated Netflix support page (via Android Authority), which now states that the streaming service no longer supports casting from mobile devices...
Cyber Week Deals 2025

Best Cyber Week Apple Deals Include Big Discounts on AirPods, Apple Watch, and More

Sunday November 30, 2025 7:33 am PST by
Cyber Week is here, and you can find popular Apple products like AirPods, iPad, Apple Watch, and more at all-time low prices. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Specifically,...
studio display purple february

M5 iPad Pro Could Hint at New Studio Display Feature

Sunday November 30, 2025 10:30 am PST by
The updated specs of the M5 iPad Pro may point toward a major new feature for Apple's next-generation Studio Display expected in early 2026. Apple's latest iPad Pro debuted last month and contains one display-related change that stands out: it can now drive external monitors at up to 120Hz with Adaptive Sync. The feature should deliver lower latency, smoother motion, and fewer visual...
Sad Siri Feature

Apple AI Chief John Giannandrea Retiring After Siri Delays

Monday December 1, 2025 2:16 pm PST by
Apple AI chief John Giannandrea is stepping down from his position and retiring in spring 2026, Apple announced today. Giannandrea will serve as an advisor between now and 2026, with former Microsoft AI researcher Amar Subramanya set to take over as vice president of AI. Subramanya will report to Apple engineering chief Craig Federighi, and will lead Apple Foundation Models, ML research, and ...
New Intel Logo

Apple and Intel Rumored to Partner on Mac Chips Again in a New Way

Friday November 28, 2025 7:33 am PST by
While all Macs are now powered by Apple's custom-designed chips, a new rumor claims that Apple may rekindle its partnership with Intel, albeit in a new and limited way. Apple supply chain analyst Ming-Chi Kuo today said Intel is expected to begin shipping Apple's lowest-end M-series chip as early as mid-2027. Kuo said Apple plans to utilize Intel's 18A process, which is the "earliest...
iphone black friday gold

The Best Black Friday iPhone Deals Still Available

Friday November 28, 2025 6:24 am PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2025 sales have kicked off at AT&T, Verizon, T-Mobile, and more. Right now we're tracking notable offers on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air. For even more savings, keep an eye on older models during the holiday shopping season. Note: MacRumors is...
maxresdefault

The MacRumors Show: Apple's Big Plans for iPad Mini 8

Friday November 28, 2025 8:39 am PST by
On this week's episode of The MacRumors Show, we talk through the latest rumors about Apple's upcoming iPad mini 8. Subscribe to The MacRumors Show YouTube channel for more videos The next-generation version of the iPad mini is expected to feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...

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)