It turned out that Google pays 36% of its search advertising revenue to have its search engine installed in Apple’s browser by default.

The deal was secret for a long time, as Google believed it would “undermine Google’s competitiveness vis-à-vis both competitors and other counterparties.” It was made public by Kevin Murphy, a professor of economics at the University of Chicago, during his testimony on behalf of Alphabet as part of a lawsuit initiated by the US Department of Justice.

The Department of Justice accused Google of using its resources to maintain market dominance. In Apple’s case, this results in Google search being set to default in Safari on iPhone, iPad, and Mac devices.

It’s still unclear exactly how much of Google’s search ad revenue that comes from Safari is, but several estimates have been released. Statista reported that Google’s ad revenue was $224 billion in 2022, and based on this, Engadget estimated that Apple is likely to receive tens of billions of dollars for Google’s default placement in Safari.

Recall that dozens of states have sued Meta for harm to young people.

Commentary