Google paid $26,3 billion to become the default search engine on all browsers worldwide

The US antitrust case against Google is about many things, but most of all it is about a force called “default.” Even if you change the browser, it is very important which search engine appears when you turn it on, that is, by default. Google apparently agrees with this, which is why it paid a huge amount to become the default search engine. The trial revealed that Google spent a total of $2021 billion in 26,3 to become the default search engine across browsers, phones and platforms. Writes about this The Verge.

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The figure, which represents the aggregate of all of Google's search distribution deals, came up during the Department of Justice's cross-examination of Google search chief Prabhakar Raghavan.

The information was released after a dispute earlier this week between the two sides and Justice Amit Mehta over whether the figure should be redacted. Mehta began pushing for greater transparency in the trial as a whole, and this information became one of the most significant new pieces of information to become public.

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By comparison, Alphabet, Google's parent company, said in its recent earnings report that its Google Search advertising business brought in about $44 billion in the last three months and about $165 billion in the last year. The company's entire advertising business, which also includes YouTube ads, generated just under $90 billion in revenue. These are all quick calculations, but essentially Google gives about 16% of its revenue from search and about 29% of its profits to these deals.

Most of this money, of course, goes to Apple. The New York Times recently reported that its agreement with Google to make Google's search engine the default on all Apple products cost the company an estimated $18 billion in 2021.

Apple's inordinately large share of this amount is why this particular deal came into the spotlight in the first weeks of the trial.

In addition, Google pays Mozilla to host the default search engine in Firefox, pays Samsung to do the same on its devices, and also has agreements with many device manufacturers, wireless carriers and other platforms that their search engine will be used by default.

Until now, those numbers have been kept a closely guarded secret, leaving competitors and analysts to speculate on how much it costs Google to be the near-universal choice.

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The information comes as Google begins its defense in a lawsuit that began with Raghavan's testimony that Google is constantly at risk of losing its popularity (and its users) to platforms like TikTok and ChatGPT.

Raghavan said some users call his search engine the "grandfather of Google."

On the other hand, the Department of Justice argues that spending $26,3 billion on blanket enforcement of default status is actually a way to make the market uncompetitive.

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