Being the default service or app that a user uses on their phone, tablet, or PC is very important to many developers and companies. This is because most users can’t be bothered to change their default settings, meaning that right out of the box, these users are using a company’s product or service with minimal marketing effort from the company themselves.
This is also why it’s not surprising that Google is spending a lot of money paying companies to ensure that their products and services are the default. Take for example Apple, where during an antitrust trial involving Google, court documents have revealed that Google paid Apple a whopping 36% of its revenue from search from Safari.
This essentially amounts to $18 billion back in 2021, which is pretty much in line with what we had heard previously where it was reported that Google could have paid Apple as much as $20 billion. Presumably the amount Google makes from search revenue is considerably higher if they’re willing to part with $18 billion just to Apple.
Recent reports have also revealed that Google paid Samsung also in the billions to ensure that the Play Store and its apps were the default apps on Samsung’s smartphones. That being said, Google’s decision has raised quite a number of eyebrows which is one of the reasons why the company is under the legal spotlight at the moment.
Source: Bloomberg