Google’s brutal revenue cut from Safari revealed

The antitrust case he faces in the United States is increasingly troubling Google. Especially due to the large amount of confidential information being disclosed. Yesterday, for example, it turned out the brutal approach that Apple is taking revenue generated by the search engine through Safari.

The curious thing is that the information was supposed to remain secret, but was revealed by one of the experts who testified in favor of Google. That’s Kevin Murphy, the University of Chicago professor who testified Monday.

The above stated that Apple keeps 36% of the advertising revenue that Google generates through its Safari search engine.. Reportedly Bloomberg While covering the antitrust case, John Schmidtlein, Google’s lead lawyer, looked visibly uncomfortable when Murphy revealed this fact.

Both Mountain View residents and their neighbors in Cupertino have been reluctant to publicly acknowledge some of the details surrounding the agreement that brings them together. In fact, in early October, it was revealed that Google was paying Apple about $18 billion annually to keep Safari as its default search engine.

However, new data provided by Murphy shows how much of that figure represents the total revenue Alphabet generates through Apple’s web browser alone. The fact that Apple gets more than 35 percent of Google’s revenue from Safari speaks volumes. a brutal deal for both sides.

Apple gets 36% of Google’s revenue from Safari

Obviously, allowing Apple to take such a large share is because this business is more than profitable for Google. If the $18 billion they pay Cupertino residents to become the default search engine for Safari represents 36% of the revenue they make on that browser, we’re talking Mountain View residents entering. at least 50 billion dollars per year only from Apple devices (iPhone, iPad, Mac).

As it turned out during the antitrust trial against Google in the United States, the current agreement with Apple has been in effect since 2016, when the terms that had existed since 2002 were revised. Eddie Qone of Tim Cook’s main supporters, was responsible for communicating directly with Sundar Pichai, CEO of Alphabet, before closing the numbers effective today.

Cue himself admitted that Apple wanted an even higher percentage of the revenue Google received from Safari. Although it was never publicly disclosed, the executive noted that after several push and pullit was agreed upon how much the search engine was currently paying. The contract is estimated to represent between 14% and 16% of Apple’s annual operating profits..

There are still several chapters to be written in the antitrust case against Google in the US. The U.S. Justice Department accuses Mountain View of stifling its competitors by offering exclusive deals to its major business partners. The verdict of the judge in charge of the trial is expected to be known sometime in 2024.