The ongoing US Justice Department’s antitrust trial has unveiled that Alphabet’s Google pays Apple approximately 36 per cent of the revenue generated from search advertising through the Safari browser. This revelation, disclosed by Alphabet’s main economics expert Kevin Murphy, has drawn attention to the closely guarded details of the enduring partnership between Google and Apple. The disclosure triggered a visible reaction from Google’s main litigator, John Schmidtlein, as both companies had initially resisted publicly revealing specifics about their agreement.
The collaboration between Google and Apple dates back to 2002, when Google became the standard search engine in Apple’s Safari browser. Over the years, this arrangement has become increasingly pivotal for Google, especially as it designates the search engine for the iPhone, the most widely used smartphone in the United States. The Justice Department is examining this agreement as potential evidence that Google is unlawfully maintaining its dominance in both the search engine and search advertising markets.
While Google and Apple had aimed to keep the details of their agreement confidential, the disclosure of the 36 per cent revenue-sharing arrangement has raised questions about the dynamics of their partnership. In a recent court filing, Google argued that revealing additional information about the deal could “unreasonably undermine Google’s competitive standing in relation to both competitors and other counterparties.” This ongoing antitrust trial is shedding light on the intricacies of the tech industry’s relationships and their potential impact on market competition.
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