The US Department of Justice (DOJ) lawsuit against Google ‘s monopolistic practices opens up a new fact. Google has played a major role in the success of Apple ‘s business.
In the lawsuit, the US Department of Justice sued the cooperation agreement between Google and Apple. Google collaborates with Apple by making its search engine Google the main search engine. Whether on Apple’s mobile devices or web browsers.
Google asks Apple to become its default search engine
By placing Google as the default search engine in the Safari browser for iPhone and iPad, Google controls 36% of search queries in the US. As a result, Apple devices accounted for nearly half of Google’s search traffic in 2019.
Google paid Apple dearly for the partnership; about US $8 billion per year to become the default search engine for Apple products.
Apple counts Google’s payments as part of its services business. It recorded sales of US $ 46.2 billion in fiscal 2019 or contributed 17.7% of the company’s total revenue, the DOJ wrote in its lawsuit.
In recent years, Apple has been trying to make the subscription service business the future of the company in addition to selling devices.
Quoted from reuters, assuming the DOJ’s assessment of Google’s payments is accurate, Google accounts for nearly 17% -26% of Apple’s service revenue. If this cooperation is maintained, in the future one of Apple’s biggest revenue contributing partners will be Google.