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Google pays $ 9 billion a year to remain the default search engine in the iPhone

When Apple first introduced the iPhone, the decision to use Google as the default search engine on mobile Safari was obvious. After all, Google was certainly the dominant search engine at the time, and Microsoft’s Bing did not exist until June 2009. Despite the increased competition in the search market over the past few years, there is no doubt that Google remains still the best search engine on the planet. Nevertheless, Apple has been allowing iOS users to change the default search engine on mobile Safari to Bing, DuckDuckGo or local systems, for example, Yandex in Russia and Baidu in China for some time.

However, Google’s mobile Safari is not an advantage that Apple provides free to the search giant. On the contrary, Google pays a lot of money to enjoy its default search engine status on the iPhone and iPad. It’s hardly a discovery that the bulk of Google’s revenue is still coming from search-based advertising, and the company has long been willing to pay astronomical payments to remain the default search engine on mobile Safari.

As for how much Google pays for this privilege, well, that’s an interesting story. The only official amount we saw was in a court document in 2014, which showed that Google at that time was paying Apple $ 1 billion a year for the status of the default search engine.

Since then, analysts have argued that the annual fee has grown significantly, and the report for last year that Google in 2017 paid Apple more than $ 3 billion. Nevertheless, analyst Goldman Sachs Rod Hall now argues that Google can pay Apple in the amount of up to $ 9 billion in 2018,To save your search engine for iOS users by default. Keep in mind that the Hall number, which was originally identified by the Business Insider, is nothing more than an estimate, since Google and Apple do not comment on this issue. In any case, Hall argues that the annual fee that Google pays Apple is growing, due to the increase in the number of Google search queries that occur through Siri. Looking to the future, Hall writes that Google can eventually pay Apple in the amount of up to $ 12 billion in 2019 so that Google does not use the default search function.

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