Google maybe paying Apple a part of its Chrome search revenue
As per information from a UK regulator, it seems that Google is paying Apple a share of search revenue in order to prevent it from launching any kind of system that can act as a rival for Google.
Within the last month, we have heard quite a lot that Apple is working on creating its own search engines that can be a rival to Google. It might be a possibility that the company could be subjected to sanctions to prevent Apple from doing so.
Google maybe paying Apple to prevent the company for launching its rival
As per information from The Register, Google is paying Apple money about the iOS application searches people are doing on Google Chrome. This report has made higher-ups quite concerned, as these payments are exceptional compared to what Google is paying for its search revenues.
As this isn’t officially stated by the CMA, All of this report and information is based on a document from a UK regulator that was released in June 2021.
These documents contained material that had been suppressed, and the publisher assumed that the references to Chrome on iOS had been deleted.
According to a passage in the CMA report, “Apple obtains a considerable share of money from Google Search traffic on Safari and [x] on iOS devices.”
There are three sections where the UK regulator does so, albeit it is unclear why it would withhold what it has apparently learned from its probe. One of them discusses the CMA’s concerns with regard to all of this.
According to the CMA, “With this revenue split, when [x] or Safari is successful in competing for an iOS user, it only earns a partial share (i.e., the income to which it was not previously entitled) of the search traffic revenue.” Furthermore, these revenue-sharing agreements reduce the motivation for browser competition on iOS.
As stated by the CMA, this whole revenue situation is acting as a great incentive for Apple, and maybe it has stopped working towards launching a rival for Google.
We can’t say how much Google is paying Apple to do so because Chrome is the main roadblock. Although, in accordance with a previous report, Google may be paying $15 billion to mobile phone companies that have Google as their default search engine,
However, there are no comments from either party regarding this issue.
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