Google pays big amount to stay iOS default search engine

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If you thought the Android ecosystem was the only major source of traffic for Google, you would be mistaken. The Search Giant has an iron grip on iOS as well as desktop. But that unrivaled dominance comes at a cost. In the case of iOS devices, that cost is $3 billion. That is triple what Google paid Apple three years ago to be the favorite search engine on iOS.

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A securities analyst at Bernstein said that such a huge ask might be a deal breaker and might force Google to back out of the deal. The licensing fees paid by Google is big money counted under Apple Services business. On the flip side, Apple’s devices make 50 percent of Google’s mobile revenue. So, the deal would be a win-win situation for both parties.

Currently, iOS users are allowed to change the default search engine from the Safari’s settings menu. But Google remains default search engine. To be honest, Google’s popularity is such that it doesn’t need to pay such royalties but 50 percent revenue is a big number for Google. Hence, going on with the deal makes sense.

Source: CNBC

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