This revelation sheds light on the financial arrangement between the two tech giants, which is a key focal point in the ongoing monopoly case.
Prosecutors argue that the business dealings between Google and Apple have unfairly stifled competition in the digital landscape. The disclosure of the specific share of ad revenue sent to Apple reportedly led Google’s lead lawyer to visibly react, highlighting the significance of this detail.
Google has consistently maintained that its dominant position in online searches is a result of offering a superior product. The trial, which commenced in September, has seen many proceedings shielded from the public eye to protect trade secrets. However, some details have emerged.
Overall, Google has paid over $26 billion to various companies, including Apple, Samsung, and Mozilla, to secure its position as the default search engine. Analysts on Wall Street estimate that Apple alone received more than $18 billion from this arrangement.
Kevin Murphy, a professor at the University of Chicago who revealed the share of advertising revenue allocated to Apple by Google, argued that these substantial payments underscore the intense competition in the market. This aligns with one of Google’s key arguments in its defense.
The trial is expected to conclude in the coming days after a series of witnesses, including Alphabet’s CEO Sundar Pichai and Microsoft’s CEO Satya Nadella, provided testimony. The US Department of Justice prosecutors are seeking substantial penalties, including an end to anti-competitive practices. A ruling against Google could have significant ramifications for the tech industry, even if it does not lead to the breakup of the company. The presiding judge, Amit Mehta, is not expected to deliver a verdict until early next year.