It's extensively known that Apple and Google have a considerable financial agreement that ensures Google's position as the dereliction hunt machine on Apple's iOS, but neither company reveals the quantities involved. In 2021, financial counsel Bernstein suggested Google was paying Apple as much as$ 10 billion a time to maintain the status. still, in a new investor note, the critic claims Google's payment to Apple is now between$ 18 billion and$ 20 billion.
First reported by The Register, Bernstein published a report assessing the implicit counteraccusations for Apple of the US government's ongoing antitrust trial against Google, with the Department of Justice considering Google's Information Services Agreement( ISA) with Apple as substantiation that it has a hunt machine monopoly.
" We believe there's a possibility that civil courts rule against Google and force it to terminate its hunt deal with Apple," said Bernstein in the report seen by The Register." We estimate that the ISA is worth$ 18B- 20B in periodic payments from Google to Apple, counting for 14- 16 percent of Apple's periodic operating gains."
Bernstein says Google pays out 22 percent of total announcement profit under its business accession costs( TAC) and estimates Apple likely receives around 40 percent of this. Bernstein bases its figures on Apple's public forms as well as a bottom- up analysis of Google's business accession costs. The DoJ has said in the trial that it thinks Apple receives around$ 10 billion from the ISA with Google, although its information comes from external sources.
" Importantly, Google is on trial, not Apple, and Apple could( in proposition) mate with another hunt machine to be the dereliction( and/ or retain the agreement with Google outside the US)," the report states."
One more likely script is that Apple offers a choice screen. We note that Apple controls access to its installed base, which generates
60B in advertising earnings, and consequently, we believe that Apple would continue to command a commission( in the 25- 30 percent range) for furnishing access to those hunt advertising earnings.
"Also, preface of a choice screen could offer Apple the occasion to potentially launch its own hunt machine as an option – commodity it could probably not do moment without raising the eyebrows of controllers," The Bernstein report adds.
Last month, the trial revealed that Microsoft considered dealing its Bing hunt machine to Apple. Had the accession happed, Bing would have replaced Google as the dereliction hunt machine on Apple bias.
Experts say there's a chance Google could lose the case, which would put Apple's economic agreement, which has been in place for a decade, in significant jeopardy. still, a ruling in the case is not anticipated before coming time, and the liability is that proceedings will be extended by the lengthy prayers process.
