Details about the agreement between Apple and Google

Apple and Google are in a final race in the technology world. But the behind-the-scenes view is very different. The two technology giants have a multi-billion dollar deal, from which they are both making huge sums.

According to market analysts, Google pays Apple 8 billion to 12 billion annually. The purpose of the money is to use Google as the default search engine on all Apple devices. Understandably, almost half of Google’s search engine profits come from Apple devices, and this gives Google a huge amount of opportunities to dominate the Internet world.

Early in the history of Google, they had a very friendly relationship with Apple. Google founders Larry Page and Sergey Brin saw Steve Jobs as a mentor at the time. Many times they could be seen together. Google’s then-CEO was a member of Apple’s board of directors. In 2005, Google agreed to install Google as the default search engine in Safari, a browser used on Mac computers. Then, in 2007, when the first iPhone was announced, Google became the default search engine. From this point on, Google gradually became a big company.

Google did not want to be limited to search engine companies. They began to dominate themselves. As a result, their rivalry with Apple began. In 2008, they hit Apple’s business directly with the announcement of the Android operating system. The following year, Google CEO Eric Schmidt resigned from Apple’s board. From then on, they gradually started challenging each other’s business. For example: Play Store competes with Apple’s App Store, Siri competes with Google Assistant.

Microsoft Bing was initially used as a search engine in the Mobile Assistant series. In 2017, Bing was replaced by Google. At the time, Apple and Google CEO Tim Cook and Sundar Pichai were spotted having dinner together at a Vietnamese restaurant in California. When a new contract was being struck between the two companies, both were much needed. Google is facing fierce competition for its fast-growing advertising business on Facebook. At the time, the deal with Apple had rolled out their product overnight on more than a billion devices. Now almost half of Google’s search comes from Apple devices. If you do some search on iPhone, it is delivered directly to Google site.

The deal benefited Apple in two ways. First, there was a consistency in the search results for Safari, Siri and Spotlight. At the time, Tim Cook was not satisfied with Microsoft Bing’s performance in the Voice Assistant series. Second, Apple set an ambitious goal of raising its annual profit to 50 billion by 2020. There was an opportunity to move forward with the money received from Google. And now, the money from Google is 15 to 20 percent of Apple’s annual profit. As a result, they’ve got huge funding for Apple’s ambitious plans.

Apple is working as a store here. The most interesting products are kept in front of a store. Apple is leasing this space to Google. And Google is making huge profits from there. From 2009 to 2017, Bruce Sewell served as Apple’s general advisor. He said:

“In Silicon Valley, we have a weird word called‘ co-option.’ Despite the fierce competition, the necessary cooperation is available.

In fact, the general public has no idea about the deal. Rather, there is a hint of a more competitive attitude. For example, Apple’s Tim Cook once criticized Google, saying that Google’s main profit comes from advertising on the Internet. As a result, Google is forced to monitor its users. In fact, even though they compete head-to-head in many things like smartphones, digital maps, laptops, they know how to be friendly in the place of their own interests.

In October 2020, the US Department of Justice filed an antitrust lawsuit against Google. This is usually the case when a company monopolizes its own market. That is, it does not give other companies enough opportunities to compete. The US Department of Justice has sued Google, alleging that such behavior harms Internet users, advertisers and other technology companies. As a result of this agreement, Google has expanded the monopoly of 92 percent of the world’s search. The lawsuit further claims that Google has described the loss of the default search engine space on Apple devices as a “code red” threat within its company. Google has denied the allegations.

Google has repeatedly claimed that the reason they dominate Internet search is because users like them. They claim that the judiciary has painted an incomplete picture. Their agreement with Apple is as simple as Coca-Cola paying to replace the front shelf in a supermarket. Microsoft’s Bing also made a profit-sharing deal with Apple. Google has made it clear that anyone who wants to can remove Google from their device’s default search engine space. But very few people do that.

Google says it is preparing to challenge the lawsuit. Google’s chief legal officer said the lawsuit would not benefit users in any way. Moreover, their relationship with Apple is very common. But if the judiciary succeeds, what will happen?

The case is not easy. As a result, it can last for many years. However, if Google loses here, their agreement with Apple will be canceled. It could cost Apple as much as Apple, which could be a huge threat to Google. Search engines like Bing, Dakdakgo, Yandex but none of them dominate like Google. But some analysts claim that Apple alone has the ability to strike a blow at Google’s search engine dominance.

Many Google insiders agree. This is because Apple devices have more than a billion users. Maybe as a result of this case, Apple will take the initiative to create their own search engine. Moreover, if the agreement is canceled, Apple may make it difficult for its users to use Google search.

Many analysts have suggested that Apple might buy a search engine company. Apple has not yet commented. However, there is little doubt that both companies will initially suffer a financial blow if the deal is scrapped. The shape of the internet world in the future will be understood from the verdict of this case.