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 17 models

No iPhone 18 Launch This Year, Reports Suggest

Thursday January 1, 2026 8:43 am PST by
Apple is not expected to release a standard iPhone 18 model this year, according to a growing number of reports that suggest the company is planning a significant change to its long-standing annual iPhone launch cycle. Despite the immense success of the iPhone 17 in 2025, the iPhone 18 is not expected to arrive until the spring of 2027, leaving the iPhone 17 in the lineup as the latest...
duolingo ad live activity

Duolingo Used iPhone's Dynamic Island to Display Ads, Violating Apple Design Guidelines

Friday January 2, 2026 1:36 pm PST by
Language learning app Duolingo has apparently been using the iPhone's Live Activity feature to display ads on the Lock Screen and the Dynamic Island, which violates Apple's design guidelines. According to multiple reports on Reddit, the Duolingo app has been displaying an ad for a "Super offer," which is Duolingo's paid subscription option. Apple's guidelines for Live Activity state that...
Low Cost A18 Pro MacBook Feature Pink

Apple's 2026 Low-Cost A18 Pro MacBook: What We Know So Far

Friday January 2, 2026 4:33 pm PST by
Apple is planning to release a low-cost MacBook in 2026, which will apparently compete with more affordable Chromebooks and Windows PCs. Apple's most affordable Mac right now is the $999 MacBook Air, and the upcoming low-cost MacBook is expected to be cheaper. Here's what we know about the low-cost MacBook so far. Size Rumors suggest the low-cost MacBook will have a display that's around 13 ...
govee floor lamp

CES 2026: Govee Announces New Matter-Connected Ceiling and Floor Lights

Sunday January 4, 2026 5:00 am PST by
Govee today introduced three new HomeKit-compatible lighting products, including the Govee Floor Lamp 3, the Govee Ceiling Light Ultra, and the Govee Sky Ceiling Light. The Govee Floor Lamp 3 is the successor to the Floor Lamp 2, and it offers Matter integration with the option to connect to HomeKit. The Floor Lamp 3 offers an upgraded LuminBlend+ lighting system that can reproduce 281...
Belkin 25W Battery magnetic

CES 2026: Belkin Announces Magnetic Ring Power Bank, Modular Dock, and More

Sunday January 4, 2026 3:02 pm PST by
Belkin today announced a range of new charging and connectivity accessories at CES 2026, expanding its portfolio of products aimed at Apple device users. UltraCharge Pro Power Bank 10K with Magnetic Ring The lineup includes new Qi2 and Qi2.2 wireless chargers, magnetic power banks, a high-capacity laptop battery, and USB-C productivity accessories, with an emphasis on higher charging...
airpods pro 3 glitter

AirPods New Year's Deals Include Up to $99 Off AirPods Max, AirPods Pro 3, and AirPods 4

Sunday January 4, 2026 8:04 am PST by
Now that the calendar has flipped over into January, steep discounts on popular Apple products have become more rare after the holidays. However, if you didn't get a new pair of AirPods recently and are looking for a model on sale, Amazon does have a few solid second-best prices this week. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a...
Low Cost MacBook Feature A18 Pro

Low-Price 12.9-Inch MacBook With A18 Pro Chip Reportedly Launching Early This Year

Friday January 2, 2026 9:08 am PST by
Apple plans to introduce a 12.9-inch MacBook in spring 2026, according to TrendForce. In a press release this week, the Taiwanese research firm said this MacBook will be aimed at the entry-level to mid-range market, with "competitive pricing." TrendForce did not share any further details about this MacBook, but the information that it shared lines up with several rumors about a more...
Clicks Communicator Feature

'Clicks Communicator' Unveiled — Will You Carry This With Your iPhone?

Friday January 2, 2026 6:35 am PST by
The company behind the BlackBerry-like Clicks Keyboard accessory for the iPhone today unveiled a new Android 16 smartphone called the Clicks Communicator. The purpose-built device is designed to be used as a second phone alongside your iPhone, with the intended focus being communication over content consumption. It runs a custom Android launcher that offers a curated selection of messaging...

Top Rated Comments

WannaGoMac Avatar
68 months ago
That's a lot of iphone chargers
Score: 52 Votes (Like | Disagree)
Apple_Robert Avatar
68 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
68 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
68 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
68 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
68 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)