Google paid Apple $1 billion in 2014 to be the default search engine on iOS

By , Jan 21, 2016

google search

Google paid Apple $1 billion in 2014 to remain the default search engine on iOS, reports Bloomberg. The staggering number comes directly from a transcript of court proceedings in Oracle’s ongoing copyright lawsuit against Google, which stated that the search giant has an agreement with Apple that gives it a percentage of search revenue generated through iPhones and iPads.

The amount Google paid Apple to remain the default iOS search engine has long been speculated about, but the companies have never publicly disclosed it. In fact, when the terms of the agreement popped up in the recent court proceeding, lawyers from both Apple and Google filed requests to seal and redact the transcript, citing potential damages to their respective businesses.

Annette Hurst, the Oracle attorney who disclosed details of the Google-Apple agreement at last week’s court hearing, said a Google witness questioned during pretrial information said that “at one point in time the revenue share was 34 percent.” It wasn’t clear from the transcript whether that percentage is the amount of revenue kept by Google or paid to Apple.

An attorney for Google objected to the information being disclosed and attempted to have the judge strike the mention of 34 percent from the record. “That percentage just stated, that should be sealed,” lawyer Robert Van Nest said, according to the transcript. “We are talking hypotheticals here. That’s not a publicly known number.”

“The specific financial terms of Google’s agreement with Apple are highly sensitive to both Google and Apple,” Google said in its Jan. 20 filing. “Both Apple and Google have always treated this information as extremely confidential.”

Interestingly enough, although the judge denied Google’s request to block or seal the information, Bloomberg noted that the aforementioned transcript mysteriously disappeared from electronic court records around 3pm Thursday afternoon Pacific time.

Oracle has been in an ongoing legal battle with Google since 2010, over claims that the Mountain View company used its Java programming language to develop Android without paying for it. Oracle is seeking to win damages in upwards of $1 billion.

Source: Bloomberg

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  • Mr.Coolfreak

    Hypocritical on Apple’s part, profiting from a business they always criticize

    • leart

      i think apple didn’t want to take the money but google insisted.. soo…

      • Himanshu Oberoi

        Are You kidding me? You are saying like apple is like the guest and Google is the host of the party, And in the end of the party Google insisted apple to take return gift along.
        They are Huge business house, They do, what make them most profitable.

      • leart

        im not kidding you, why are you saying that, it was a JOKEEEE

    • 5723alex .

      Wonder how much Microsoft has paid Apple to switch to Bing, in 2015.

      • leart

        in my opinion google still is the number one but yahoo is getting closer, bing it is very fast but it gives limited search results

      • Rowan09

        Bing is default for Siri.

    • Himanshu Oberoi

      Never Trust Business man & Politician Because they do whatever it takes to be on top. They Flip immediately to that side from where they can make the profit, the most.

    • Rowan09

      Huh? Google and Apple both make products and benefit from each other even though they are competitors.

    • igorsky

      Yeah because you would definitely leave $1 billion on the table.

      How old are you?

  • Rodney Coleman

    But it’s smart business.

  • TheShade247

    They didn’t need to, 99.4% people change there default search engine to google anyway.

    • Mr.Coolfreak

      I think you are really over estimating that number, most people don’t even know how to change the default, and if default was changed they wouldn’t care or even notice

  • Everybody knows Google is the best search engine, even in Russia and China.

    • 5723alex .

      There is no Google in China.

      • Himanshu Oberoi

        He was being sarcastic.

  • Valic Muntyan

    hi i have an iphone 6 version 9.0.1 and i have jailbroken with pangu and everything was runing great till i wanted to add a sourse in cydia, it was crashing when i was clicking on source then i unistalled cydia installer and i lost cydya. when i try again to jailbreak with pangu it says its alrady jailbroken. how can i add cydia back? please help and thank you

  • the hood

    Yes Tim Cook beats his chest over maintaining ‘your privacy’ yet hands it over to Googke to mine your data for $1billion. Cla$$ act.

    • Rowan09

      Not true. Google paid to be the default browser which you can change if you please.

      • the hood

        Same difference Rowan, I’ll bet alot of non-jailbroken users wouldn’t even know how to change the default browser.
        Either way, shonky Tim was happy to take the money knowing what Google is up to. The same shomky Tim who criticised Google publicly over their business practice. A cla$$ act indeed.

      • Rowan09

        Making money from Google and giving away information is two different things. What Google does by selling your information is different than them paying Apple to be the default browser.

  • TJ

    DuckDuckGo all the way! Apple should make it the default, never mind Google.

    • Blacklight: Retribution

      DuckDuckGo sucks.

  • TechnoBuff

    You spend money to make more money! Any savvy business knows that.
    This is not a rare case. Nothing special here or strange.

  • iPhoneWINS

    Navigate from maps tweak is broken… If I use it from google maps app it no longer shows tom-tom as a navigation option …. Can the dev fix this?