Earlier this evening, the Oracle vs. Google lawsuit revealed Android’s revenues and profits for the first time. The same case has now revealed that Google paid Apple $1 billion in 2014 as part of its ongoing deal to be the main search provider—as in the one that resides in the search bar by default—on iOS devices.
Specifically, Apple’s deal with Google gives it a percentage of the revenue that the search engine generates through Apple devices. An Oracle lawyer said that the revenue share was 34 percent (although it’s not clear based on the transcript whether that means Apple got 34%, or if Google kept 34%). A Google lawyer quickly tried to get the percentage struck of the public record stating, “We are talking hypotheticals here. That’s not a publicly known number.”
In 2014, rumors emerged that Yahoo was pushing to replace Google as the search engine on iOS devices. Obviously, that did not materialize and whether it was because Google paid more or was the better search engine quality-wise is unknown. Google makes 4x more on iOS users than it does on its own Android users, and as such keeping the search deal is highly important to its core business.
Interestingly, this information highlights a hypocrisy on Apple’s part, revealing how much the company indirectly and directly profits from the Google ad business that it criticizes.
The revenue-sharing agreement reveals the lengths Google must go to keep people using its search tool on mobile devices. It also shows how Apple benefits financially from Google’s advertising-based business model that Chief Executive Officer Tim Cook has criticized as an intrusion of privacy.
The magistrate judge presiding over the case initially refused Google’s request to block the sensitive information in the transcript. Google has asked a federal judge to seal and redact the transcript, saying the disclosure would negatively affect their ability to negotiate similar agreements. Interestingly, Apple has also filed to redact the information.
The legal case between the two companies is born out of Oracle accusing Google of using its Java software in the creation of Android without compensation. The Supreme Court denied Google’s request to hear the case and is now back to a district court where damages are being determined. Oracle could end up receiving up to $1 billion in damages when new versions of Android are factored.
(Image via VentureBeat)
FTC: We use income earning auto affiliate links. More.
That’s a good amount of money Apple received! I don’t mind using Google as a search engine, it is probably, by far, one of the best and most known search engines. I only use Google’s search engine for personal use, other than that I use Apple’s services. In a professional sense, I use Chrome, and Google maps, because my employer has downloaded Chrome, and we are unable to download another browser, and Chrome is better than Internet Explorer lol.
I changed my default search engine to Bing on all my devices because they have that rewards program. i can’t believe that Google paid that much though.
$1B? Wow, seems desperate, on their $14B net income. Why is there no uproar from the shareholders?
Makes sense. The Google service has to be ubiquitous, and they will pay to have it’s reach spread far and wide. That, and the data gathering they get from searches. There’s a reason the term “Google it” is around, as they have positioned themselves as the go-to search engine, and would like to keep it that way.
I shouldn’t be surprised; it’s probably standard operating procedure, but Tim, I kind of feel deceived.
You’ve been disingenuous when throwing shade at Google for privacy…as you’re supplementing Apple’s billions with your referral fee. Maybe you could shore things up on this front and stop being a hypocrite. Thanks love ya, bye!
I’d bump that up to $5 billion for the next contract if I were Apple along with trying to increase their take of ad revenue. When something is that juicy, you have to extract as much as possible.
The search engine service alone is fine. It’s everything Google has built around it that together encroaches on privacy. Certain Google products are a greater invasion of privacy than others. Choose wisely!
Most people don’t have a clue how to change their default search engine is what this is telling me. Shocking
I think most people just don’t care so they have no reason to change it. As long as their search finds results, they don’t really care what’s happening (or who’s doing it) behind the scenes.
What this actually tells me is that all the major tech companies manufacture hate for each other in their rabid fans when they are actually reaping the rewards and enjoying the mania they’ve created together.