Google paid Apple $1 billion to be default search engine on iOS

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Google paid Apple $1 billion in 2014 to ensure that its search bar remained on iOS devices, according to Bloomberg.

The details emerged in court documents released in an ongoing legal dispute between Google and Oracle.

The $1 billion payout formed part of a revenue sharing agreement between the two companies which provided Apple with a share any revenue Google generated through iOS.

The details of the alleged deal shows just how important it is for Google to have its search bar function in front of as many users as possible, even if it means paying huge sums to its biggest competitor.

Google’s Android operating system which powers the majority of the world’s smartphone and tablets, accounts for almost 83 percent of the market, whilst iOS has around 14 percent.

Last year, Apple CEO Tim Cook had criticised Google for the way it uses personal data to drive its advertising based business model.

Speaking at the Electronic Privacy Information Center’s Champions of Freedom event, Cook said: “You might like these so-called free services, but we don’t think they’re worth having your email, your search history and now even your family photos data mined and sold off for God knows what advertising purpose.”

However, it seems that Apple is more than happy to receive revenue from Google’s advertising model when it is used on their own devices.

Earlier this week at the same court hearing, Bloomberg reported that the Android operating system had generate $31 billion in revenue with a profit of $22 billion.

 

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