Google should decrease the amount it pays Apple to be the default search engine for iOS

Google should decrease the amount it pays Apple to be the default search engine for iOS

You certainly have seen here in something related to the ridiculously high amounts that the Google pays Apple annually so that your search engine remains the standard for iOS and Safari values ​​that, while almost offensive to the ears of mere mortals like us, must be the very lucrative investment of the Mountain View giant considering the ubiquity of iPhones and iPads around the world.

Optimized Google AMP page on an iPhone

But it looks like the thing is about to change shape. According to Wall Street Journal, Google should decrease the amount passed on by Apple for the contract, as well as all of its general investments with the promotion of its search engine (which, let's face it, does not actually need a penny of investment in promotion at this point in the championship).

Alphabet (the parent company of Google) has told investors that it expects to slow the growth in traffic acquisition costs paid to its distribution partners that include Apple starting this year, at least in relation to that segment's revenue. This could mean less pay for Apple than a profitable source of revenue.

As we’ve talked about here, Google’s spending to maintain itself as an iOS search engine was about $ 1 billion in 2014 and rose to $ 3 billion in 2017 (estimated values, since neither company discloses the exact amount), that is, this was a graph in a vertiginous climb for some time. With the change of course, the Mountain View giant will be able to put the brakes on spending and even decrease these values ​​eventually.

The change, while certainly not going to be missed in the almost trillion-dollar general scheme of things in Cupertino, may represent a change in the situation of the iOS default search engine. Apple and Google will certainly discuss a lot to reach an agreement (no one wants to lose such a cooperation, after all), but it may be that Ma executives are not satisfied with the competitor's decision so we will have to wait to see the result of this.

via 9to5Mac