Google Paid Apple Not To Create Its Own Search Engine : A class-action lawsuit filed against Apple and Google and their respective CEOs, Tim Cook and Sundar Pichai, claims the goole and Apple have a “secret agreement” that prevents the iPhone maker from developing its own search engine . At the same time, the “pact” would oblige the Apple company to use the service offered by the Alphabet company in the Safari browser as standard.
Google Paid Apple Not To Create Its Own Search Engine
According to the lawsuit, which was filed by the California Court earlier this year, the settlement violates US antitrust laws . According to the allegation, the agreement provides for advertising revenue sharing, secret meetings and active suppression of smaller competitors, as well as acquisition of potential competitors.
The suit asked for an injunction to ban the non-compete agreement between Google and Apple . The suit alleges that fees charged for advertising have become higher than they would have been if there had been normal competition.
In October 2020, the Justice Department sued the company over a series of settlements that require Google to be the default search engine by default on billions of mobile and desktop devices.
One of these agreements is precisely with Apple. iPhones and iPads account for about 71% of Google ad clicks on mobile devices. The company would have received in 2021 about $ 15 billion to make Google the default on its devices, according to market estimates. For 2022, the value could reach US$ 20 billion.
According to the Department of Justice, “Google’s anticompetitive practices have had harmful effects on competitors and consumers.” With less competition on the internet, the company can charge more for advertising and still reduce the quality of services.