Fresh Details Emerge Regarding Google’s Payments to Apple Amid Monopoly Trial
During the ongoing trial in the United States, where Google faces monopoly allegations, new information regarding the tech giant’s payments to secure its position as a preferred search engine has surfaced.
An expert witness testifying on Google’s behalf disclosed that the company directs 36% of its advertising revenue from Apple’s Safari web browser to Apple itself. This revelation sheds light on the pivotal relationship between the two tech giants, a central point of contention in the monopoly case.
Prosecutors argue that the business dealings between Google and Apple have unfairly restricted competition in the tech industry.
According to Bloomberg, Google’s lead attorney reportedly reacted with visible discomfort when the precise percentage of advertising revenue shared with Apple was unveiled.
Google has consistently asserted its dominance in online search results by offering a superior product.
The high-stakes trial began in September, which has Google defending itself against the US Department of Justice. Much of the proceedings have been kept confidential to protect trade secrets, but specific details have come to light.
Overall, Google has reportedly paid over $26 billion to various companies, including Apple, Samsung, and Mozilla, to secure its position as the default search engine. Wall Street analysts estimate that Apple alone received more than $18 billion from these payments.
University of Chicago professor Kevin Murphy, who disclosed the portion of advertising revenue Google allocates to Apple from Safari traffic, argued that these substantial payments by Google and its parent company, Alphabet, underscore the fierce competition in the market. This aligns with one of Google’s key arguments.
The trial is anticipated to conclude in the coming days, following testimonies from numerous witnesses, including Alphabet CEO Sundar Pichai and Microsoft CEO Satya Nadella.
The US Department of Justice prosecutors are pursuing severe penalties, including ending anti-competitive practices. A ruling against Google could have far-reaching implications for the tech industry, even if it falls short of breaking up the company.
Judge Amit Mehta, presiding over the case, is not expected to issue a verdict until early next year.
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