Google Pays Apple $18B to $20B a Year to Be Default iOS Search Engine

It's widely known that Apple and Google have a considerable monetary agreement that ensures Google's position as the default search engine on Apple's iOS devices, but neither company reveals the amounts involved. In 2021, financial advisor Bernstein suggested Google was paying Apple as much as $10 billion a year to maintain the status quo. However, in a new investor note, the analyst claims Google's payment to Apple is now between $18 billion and $20 billion.
safari google search
First reported by The Register, Bernstein published a report assessing the potential implications for Apple of the US government's ongoing antitrust trial against Google, with the Department of Justice considering Google's Information Services Agreement (ISA) with Apple as evidence that it has a search engine monopoly.

"We believe there is a possibility that federal courts rule against Google and force it to terminate its search deal with Apple," said Bernstein in the report seen by The Register. "We estimate that the ISA is worth $18B-20B in annual payments from Google to Apple, accounting for 14-16 percent of Apple's annual operating profits."

Bernstein says Google pays out 22 percent of total ad revenue under its traffic acquisition costs (TAC) and estimates Apple likely receives around 40 percent of this. Bernstein bases its numbers on Apple's public filings as well as a bottom-up analysis of Google's traffic acquisition costs. The DoJ has said in the trial that it thinks Apple receives around $10 billion from the ISA with Google, although its information comes from external sources.

"Importantly, Google is on trial, not Apple, and Apple could (in theory) partner with another search engine to be the default (and/or retain the agreement with Google outside the US)," the report states. "One more likely scenario is that Apple offers a choice screen. We note that Apple controls access to its installed base, which generates ~$60B + in advertising revenues, and accordingly, we believe that Apple would continue to command a commission (in the 25-30 percent range) for providing access to those search advertising revenues.

"Moreover, introduction of a choice screen could offer Apple the opportunity to potentially launch its own search engine as an option – something it could likely not do today without raising the eyebrows of regulators," the Bernstein report adds.

Last month, the trial revealed that Microsoft considered selling its Bing search engine to Apple. Had the acquisition happened, Bing would have replaced Google as the default search engine on Apple devices.

Experts say there is a chance Google could lose the case, which would put Apple's lucrative agreement, which has been in place for a decade, in significant jeopardy. However, a ruling in the case isn't expected before next year, and the likelihood is that proceedings will be extended by the lengthy appeals process.

Tag: Google

Popular Stories

maxresdefault

Five Features Coming to AirPods Pro 3

Friday June 27, 2025 10:52 am PDT by
Apple hasn't updated the AirPods Pro since 2022, and the earbuds are due for a refresh. We're counting on a new model this year, and we've seen several hints of new AirPods tucked away in Apple's code. Rumors suggest that Apple has some exciting new features planned that will make it worthwhile to upgrade to the latest model. Subscribe to the MacRumors YouTube channel for more videos. Heal...
iPhone Car Key WWDC 2025

Apple Announces 13 Automakers Planning to Offer iPhone Car Keys

Friday June 27, 2025 11:42 am PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. During its WWDC 2025 keynote, Apple said that 13...
anker power bank recall

PSA: Anker Recalls Multiple Power Banks Due to Fire Risk

Friday June 27, 2025 4:16 pm PDT by
Popular accessory maker Anker this month launched two separate recalls for its power banks, some of which may be a fire risk. The first recall affects Anker PowerCore 10000 Power Banks sold between June 1, 2016 and December 31, 2022 in the United States. Anker says that these power banks have a "potential issue" with the battery inside, which can lead to overheating, melting of plastic...
Chase Sapphire Reserve Apple Perk Feature

Chase Sapphire Reserve Card Introduces New Perk for Apple Customers

Wednesday June 25, 2025 2:08 pm PDT by
Chase this week announced a series of new perks for its premium Sapphire Reserve credit card, and one of them is for a pair of Apple services. Specifically, the credit card now offers complimentary annual subscriptions to Apple TV+ and Apple Music, a value of up to $250 per year. If you are already paying for Apple TV+ and/or Apple Music directly through Apple, those subscriptions will...
A18 Pro Chip

New MacBook With A18 Pro Chip Spotted in Apple Code

Monday June 30, 2025 8:05 am PDT by
Apple is developing a MacBook with the A18 Pro chip, according to findings in backend code uncovered by MacRumors. Earlier today, Apple analyst Ming-Chi Kuo reported that Apple is planning to launch a low-cost MacBook powered by an iPhone chip. The machine is expected to feature a 13-inch display, the A18 Pro chip, and color options that include silver, blue, pink, and yellow. MacRumors...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching in a Few Months With These 12 New Features

Thursday June 26, 2025 2:00 am PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are around three months away, and there are plenty of rumors about the devices. Apple is expected to launch the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max in September this year. Below, we recap key changes rumored for the iPhone 17 Pro models:Aluminum frame: iPhone 17 Pro models are rumored to have an...
macbook air spacegray purple

Apple Planning to Launch Low-Cost MacBook Powered By iPhone Chip

Monday June 30, 2025 3:20 am PDT by
Apple is planning to launch a low-cost MacBook powered by an iPhone chip, according to Apple analyst Ming-Chi Kuo. In an article published on X, Kuo explained that the device will feature a 13-inch display and the A18 Pro chip, making it the first Mac powered by an iPhone chip. The A18 Pro chip debuted in the iPhone 16 Pro last year. To date, all Apple silicon Macs have contained M-series...
CarPlay Ultra Climate Controls

Here's Which Vehicle Brands Will and Won't Offer Apple's CarPlay Ultra

Friday June 27, 2025 9:52 am PDT by
Apple last month announced the launch of CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. There was news this week about which automakers will and won't offer CarPlay Ultra, and we have provided an updated list below. CarPlay Ultra is currently limited to newer Aston Martin vehicles in the U.S. and Canada. Fortunately, if you cannot...

Top Rated Comments

Steve121178 Avatar
23 months ago
Apple is all about the privacy of its users unless money is involved ?
Score: 44 Votes (Like | Disagree)
Abazigal Avatar
23 months ago
Apple has put in the effort to aggregate the best customers in the world. Of course it's going to cost people money if they want to access Apple's famously lucrative user base. And as Apple's active user base continues to grow, I expect this sum to only continue to increase in the future.
Score: 31 Votes (Like | Disagree)
headlessmike Avatar
23 months ago

Are people still searching at yahoo?
About as many as Bing globally, and about 10x as many as DuckDuckGo.



Source: https://www.similarweb.com/engines/

Attachment Image
Score: 26 Votes (Like | Disagree)
frou Avatar
23 months ago
You know that statement about consumers:


If you're not paying, then you're the product
Well you can be paying AND be the product, simultaneously
Score: 14 Votes (Like | Disagree)
headlessmike Avatar
23 months ago

It's all guessing by the so called experts, I don't believe Google are paying anywhere near the $10 billion, never mind $18 billion, that sort of money might be realistic, if the users on Apple weren't able to change the default engine, as it stands, google has no guarantees
You overestimate the average internet user if you expect them to be capable of changing the default search engine, even if they wanted to.
Score: 10 Votes (Like | Disagree)
fatTribble Avatar
23 months ago
It seems incongruous for a company like Apple that touts privacy to partner with a company like google
Score: 9 Votes (Like | Disagree)