The battle between Google and Apple to have the search engine of their choice in iOS and macOS continues to get heated. Yes, we are talking about the Google Apple deal here! If you’re an Apple enthusiast, you may already know this. You must be well aware that Google, as well as Apple, are fierce competitors. Now that Apple plans to launch its search own engine, the search engine supremacy battle is on!
Does that mean we’ll have an alternative to the Google search engine in the coming time? Of course, Google will never want to affect its authority as the most preferred search engine platform. So, what’s the take? There are rumors that Google is paying a hefty amount to Apple to stay from the browsing game!
What’s the Google Apple deal? How much is Google paying Apple not to launch its search engine? While everyone is busy talking about Facebook’s privacy battle but Apple. It will be fun to know who wins this search engine game? Will Google remain the default search engine, or will Apple take over the years-long authority by playing its search engine?
Google has significantly increased its payout to Apple for the privilege of being Google’s default browser for Safari on iOS and macOS. Let’s look at the biggest rivalry among the two Silicon Valley giants.
Will There Be An Apple Search Engine?
Apple and Google are famously in competition across the mobile world using Android and iOS and in the world of browsers, by using Chrome and Safari. Today, Apple Maps is acceptable, it is competing against Google Maps, and of course, Gmail and Apple Mail are rivals.
Thing Apple has never had a search engine, and you might not be aware that the search engine of choice in the Apple Safari browser happens to be Google. This means that you use Google as a default every time you search your iPhone and even through Siri, the Siri virtual assistant. This deal is worth millions of dollars and is expanding.
This Apple Google deal has garnered the attention of regulators who believe it’s not fair to competitors. There have been even talks of Apple creating an own version of its search engine or buying a privacy-focused one like DuckDuckGo. However, this isn’t necessarily more advantageous for Apple because the current contract provides Apple the revenue Google earns via the iPhone.
Now that we are comparing Apple and Google, why not have a look at Apple Translate Vs Google Translate: Which One’s Better?
What’s The Google Apple Deal?
The lawsuit asserts that Apple and Google have signed a non-compete contract, in which Apple says it would remain out from the business of search engines as a condition of Google’s funds.
A complaint was filed against this secret Google Apple deal. The complaint makes several accusations of anticompetitive conduct by both firms like:
- Google will split its profits from its search results with Apple.
- Apple offers preferential treatment to Google on the entirety Apple devices.
- Regular secret meetings took place between the top executives of both companies.
- Google has paid Apple millions of dollars each year to not compete with them in the search industry.
- The deal stifled the competition of small search engines, thus keeping them out of the market for search engines.
- Google and Apple have also purchased potential and real competitors in the market for search to stop them from becoming threats for their own business.
The consequence of this unlawful collaboration, according to the plaintiffs, is that it has driven the cost of advertising more than they need to be since both companies have little competition in the advertising and search engine business.
The complaint asks for an injunction that would ban any alleged contracts between Apple and Google, such as the non-compete agreement, profit-sharing agreements, preferential treatment to Google in Apple devices, and the transfer of billions of dollars from Google in cash to Apple.
How Much Is Google Paying Apple?
As per the analyst, Google paid Apple a total sum of $15 billion (roughly around Rs. 110,000,718 crores) to keep Safari as its default browser for iPhone, iPad, and Mac in 2021. The cost to keep Google as the primary search engine for Safari browser is believed to have increased and could rise by a significant amount in 2022. It is well-known that Google spends Apple an enormous amount of money each year to ensure the supremacy of its search engine.
So, how much is Google paying Apple to stay out of the search engine race? What’s the secretive Apple Google deal?
The analysts have noted that Google might need to pay Apple anywhere from $18 to $20 billion (roughly approximately Rs. 1,32,876 crores) and $20 billion (roughly approximately Rs. 14.741 crores) for FY22, the company might rethink its plan.
Isn’t it a huge deal!!!!
The company says there are two dangers in this type of arrangement:
1. A regulatory risk that is likely to take years but could affect Apple’s profit margins by 4 to 5 percent if it is found to violate the arrangement.
2. Second, Google may want to modify its terms to get less money or cease paying. Google will likely continue paying Apple to beat Microsoft if the Bing search engine could be the next contender to become Safari’s default engine.
No doubt Google is trying its best to stay the favorite default browser. Here, look at Google Testing New “Self Share” Feature In Chrome OS!
Apple Search Engine An Alternative To Google Search Engine
Developing a real competitor of Google’s Search Engine may take many years. With profits in the coming year forecast to be higher than $55 billion and $81 billion of net cash reserves at the end of the year, Apple can afford to invest in long-term projects.
Apple has tried in the past to control and own the most vital elements of its products, including the custom-designed chips that provide power to all of its devices, from the iPhone and iPod touch to the AirPods and Watch accessories to the tight integration of the software and hardware.
However, Apple has stuck to Google as its primary search engine for over ten years.
But, now, Apple has a growing motivation to change its policy since regulators are forcing Apple to decide between protecting its relationship with Google or opposing its long-standing partner in search.
The US DoJ has placed Google’s estimated annual payments of $8bn-12bn to be the default search engine in the middle of an antitrust lawsuit against the internet-related group.
Can An Apple Search Engine Ever Compete With Google?
When Bing was first launched in 2004, it offered features that Google didn’t offer at the time. It could “hover preview” of search results and a specialized search of sorts on shopping, travel, local businesses, and health search results.
Regarding the quality of results for search Microsoft’s claim to be equivalent or better results than Google’s. Although it appears to have superior products, Bing never won the battle of the search engines.
This aspect of the history of search engines favors Apple that doesn’t need to distinguish its search results from Google.
Apple’s search engine results have to appear “just good enough” to be accepted by its users in a masse. You can see this in the performance from Apple Maps, which was introduced in 2012.
Despite an unpopular launch due to its sloppy coverage of geography, Apple maps gained a dominating part of the market of 60 percent among Britain’s iPhone users less than one year after its launch.
Similar is the case for Apple music, which has become the second-largest streaming music player despite having nine years over Spotify. This Google Apple deal can totally shake the browsing base by looking at the stats and past performance.
Here’s another comparative guide that you shouldn’t miss pon. Have a look at Google Chrome Vs Firefox Browser: Which is better?
Google’s dominance in internet search won’t end with Apple’s entrance into the marketplace. However, it is likely to diminish in the light of the growing demand from consumers for privacy.
Since Google’s business model is vastly different from Apple’s, the company must likely learn to live in a hostile environment with the search engine of its competitor instead of reorienting itself to take on Apple face-to-face.
So, what’s your take on this secretive $15 Billion Google Apple deal?