According to a report, Google is compensating Apple with a significant sum of money in order to have a presence on iPhones.
-
A recent report suggests that Google may be giving Apple an annual payment of $18-$20 billion in order to maintain its status as the primary search engine on the iPhone.
-
The iPhone is under the complete control of Apple and it is estimated to generate more than $60 billion in advertising revenue.
-
If regulators adopt a strict position, this Google and Apple agreement may not remain in effect for much longer.
Google and Apple are rivals in multiple fields, with a major point of contention being the iOS versus Android argument. However, they also have financial ties between them. It is common knowledge that Google compensates Apple for the privilege of being the default search engine on iPhones. This agreement involves a substantial amount of money.
The Register, referencing a report from Bernstein, states that Google pays Apple an estimated $18 to $20 billion annually in order to maintain its position as the primary search engine on iPhones. This information was shared in regards to an Information Services Agreement (ISA) between Apple and Google, which is currently being investigated by the US Department of Justice in an antitrust case against Google.
