The default search engine for Safari, the original web browser used on iPhones, iPads, and Macs, has been set to Google for several years. It is widely accepted that Google is paying large sums of money to maintain this position. This is because, every time an iPhone user searches on the Google search engine, Google ad revenue increases.
Analysts predict that the cost of such basic search engines will likely rise from $10 billion in 2020 to $15 billion in 2021, attracting attention. According to research firm Bernstein analyst investment report. According to the report, Google’s payments to Apple are expected to increase to $15 billion in 2021 and to $18-20 billion in 2022. This speculation is being revealed based on Apple’s public disclosures and bottom-up analysis of Google’s TAC payments. Considering that it was estimated at $9 billion in 2018, it can be said that it is increasing year by year.
So, why is it expected to surge by 5% between 2020 and 2021? It explains that it is likely that Google is paying Microsoft not to allow the chase. In fact, 10 years ago, there was even a rumor that the default search engine for iPhones would be Bing.
But analysts point to two potential risks for Google paying Apple for these payments. The risk here refers to the possibility that Apple will not be able to get paid. The first is regulatory risk. For example, in July of last year, UK regulators expressed an investigation saying that the long-term contract between Apple and Google was a big barrier to participation and expansion in the search engine market. The second risk is that Google will either stop paying Apple for its basic search engine entirely, or try to reduce its payments by renegotiating the terms. It could be close to $20 billion in 2022, which could mean that Google may reconsider its strategy.
Criticism has been growing for years over Apple’s setting Google as the default search engine for iPhones, iPads and Macs. Earlier this year, an Apple representative also answered that the most popular search engine is currently Google, and Apple supports Google, but it also supports DuckDuckGo and recently started supporting Ecosia.
Recently, Apple has repeatedly emphasized growth in its services sector, but much of this appears to be paid for by Google. However, while iOS 14 and later focus more on privacy, it may raise questions about the inconsistency of the Google search engine over which you have no control. Related information can be found here.