It is believed to be the single largest amount Google ever makes to any company. It is now estimated that Google’s payment to Apple could be to the tune of $20 billion in 2022. However, it’s believed to be in the billions.įor 2020 The New York Times stated the fact that Apple receives between $8 and $12 billion annually in exchange to make Google the primary search engine on its iOS devices. Neither Google nor Apple has ever revealed how much Google pays to become its default browser on Apple iPhones across the United States, the United Kingdom as well as other countries. It’s no secret that Apple and Google have a significant monetary agreement that guarantees Google’s status in the position of being default choice for search for Apple devices. It also requests the court to terminate the profit-sharing arrangement and preferential treatment, as well as end of the multi-billion dollar payments deal.įinally, the complaint is calling for “the dissolution of Google into separate and distinct companies, and the dissolution of Apple into separate and distinct businesses in line to the precedent set by the dissolution of the Standard Oil company into Exxon, Mobile, Conoco, Amoco, Sohio, Chevron and many others.”
The complaint, therefore, seeks an injunction to stop any non-compete agreements between Google and Apple. However, the agreement between Google and Apple helps both the companies to enjoy monopoly and control advertising rates. The complaint claims that the rates for advertising are on the higher side intentionally and in a competitive scenario it would go down easily. Google’s non-compete clause also hints at actively stifling smaller competitors, as well as the acquisition of competitors, both potential and existing. But the actual plan goes beyond restricting Apple alone. The lawsuit further asserts that Google is obligated to pay Apple annually multi-billion dollars payment in exchange for an agreement that Apple will refrain from developing its own search engine. Both the companies are accused of indulging in the arrangement where Google will split earnings with Apple in exchange for special treatment on its devices, such as those of the iPhone as well as the iPad.
In particular, the complaint specifically accuses Tim Cook, CEO – Apple Inc, and Alphabet-owned Google CEO Sundar Pichai of participating in “ regular secret meetings“. The lawsuit asserts that the two companies are bound by an agreement to not compete regarding the online search business which is in a direct violation of US antitrust law. Earlier in the week, the lawsuit was filed against Apple, Google, and their respective CEOs in the California court.
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