Apple gets a cut from Google’s advertising

Joel Rosenblatt for Bloomberg:

Google Inc. is paying Apple Inc. a hefty fee to keep its search bar on the iPhone.

Apple received $1 billion from its rival in 2014, according to a transcript of court proceedings from Oracle Corp.’s copyright lawsuit against Google. The search engine giant has an agreement with Apple that gives the iPhone maker a percentage of the revenue Google generates through the Apple device, an attorney for Oracle said at a Jan. 14 hearing in federal court.[…]
The revenue-sharing agreement reveals the lengths Google must go to keep people using its search tool on mobile devices. It also shows how Apple benefits financially from Google’s advertising-based business model that Chief Executive Officer Tim Cook has criticized as an intrusion of privacy.

If last year’s rumours of Google’s possible ousting as the default search engine on iOS are to be believed, this deal was why Google is still the default iOS search engine. Taken on its face value, this deal paints Apple as a hypocrite. I’m positive though that there’s more to this debacle that should exonerate Apple off that blame.

In Uncategorized by Mayur Dhaka