How much is it worth to be the iPhone ’s default search engine ?
Somewhere between $ 18 and $ 20 billion a year . harmonise to a Bernstein psychoanalyst , that ’s how much Google is paying Apple to keep its top topographic point , representing roughly 15 % of the iPhone maker ’s annual operating lucre .
Bernstein analysts are looking into Apple ’s exposure to the Department of Justice ’s antitrust case against Google , originally reported byThe Register . One of the major pursuit areas of the pillowcase is the payment it makes to Apple , classified under the Information Services Agreement ( ISA ) .
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“ We believe there is a possibility that federal courts [ will ] decree against Google and force it to terminate its search raft with Apple , ” says the Bernstein report .
Google ’s Chief Executive Officer Sundar Pichai raised concerns over the spoilt optics of its Safari deal back in 2007 . “ I do n’t retrieve it is a upright user experience nor the optics is great for us to be the only provider in the internet browser,”said Pichaiin emails to carbon monoxide - founder Larry Page and Sergey Brin that were revealed in the shell .
The Justice Department ’s lead litigator Kenneth Dintzer , estimates Google ’s ISA payments to be over $ 10 billion , and while the true figure remains confidential , the $ 18-$20 billion estimation assume a young magnitude . Not to mention what Google is paying to Android for the same prioritization .
Image: Anna Moneymaker (Getty Images)
Google’scounterargumentclaims that Google ’s competitive advantage is because drug user choose the service to rivals , but Dintzer insists that these nonremittal configurations are sinewy , according toReuters .
While Apple is the recipient of read payments , it is undecipherable how much they stand to fall back in Google ’s antimonopoly casing . “ Importantly , Google is on trial , not Apple , and Apple could ( in theory ) partner with another search railway locomotive to be the default ( and/or hold the concord with Google outside the US ) , ” says the Bernstein report .
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