It remains to be seen how the U.S. v. Google antitrust case plays out, but one thing it exposes is how much the company is willing to pay to be a default search option across devices and platforms. Of course, Google wanted to keep the information secret — it believed disclosure would harm its ability to negotiate contracts — but the judge in the case, Amit Mehta, wanted the trial to be more public and ordered certain numbers to be disclosed.
So we now know how much Google pays to be the default search engine across browsers, phones, and platforms—at least for a given year. The tech giant paid other companies $26.3 billion in 2021 for the privilege, according to testimony Friday from Prabhakar Raghavan, a senior Google executive responsible for search and advertising. Raghavan added that defaulted payments are the company’s biggest cost.
That’s a staggering number, but it seems less so when compared to the $146.4 billion Google earned from search advertising that same year.
when approaching wealthGoogle noted that its trial replyIn it, Kent Walker, president of global affairs, noted, “Our success depends on the quality of our products, not the number of contracts.”
But, obviously, Google bids on default settings because they really matter, as spokesman Peter Schottenfels said admit this New York Times. As Walker writes: “Browser manufacturers like Apple and Mozilla choose to provide default search engines. They compete for default search providers and choose the best search provider for users. We strive to get this position so that users can Easy access to Google search.”
The question now is whether Google’s deals with Apple and other companies are anticompetitive.
“This case is about the future of the Internet and whether Google’s search engine will face meaningful competition,” said Kenneth Dintzer, the Justice Department’s chief litigator. During the period opening statements last month. He believes that Google has maintained an illegal monopoly since as early as 2010, and its role as the default engine for much of the Internet is a key factor.
One outcome of this trial could be that the tech giant is forced to stop paying companies to make Google a default on various devices. Critics, meanwhile, say governments should force Google to make it easier for Android users to set defaults for rival services.
Another revelation from the trial shows how important default is to Google highlight edge. Jim Kolotouros, vice president of Android platform partnerships, wrote in an internal email in 2020: “Chrome exists to serve Google search. If it can’t do that because it is set by the user, then use Chrome The value to users is almost zero (to me).”
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