We all know the rivalry between Google and Apple. Sometimes we judge ourselves, iPhone or Android, Apple Maps or Google Maps, Safari is better, or Chrome. But you’d be surprised to know that the executives of both companies behind the scenes are making multi-billion dollar deals and making their own company stronger.
Google and Apple’s business relationship
Google every year pays Apple 8 to 1 billion dollars. And the purpose of this huge payment is to make Apple the default search engine on billions of its devices. This agreement helps Google to dominate the search engine market. So that 90 to 95 queries of search engines across America come from Google. The partnership between Google and Apple is so strong that these companies often face various lawsuits. However, the question may come to your mind, how can these two rival companies in Silicon Valley make such an agreement between themselves? We have to go back decades to find out.
The past of Google and Apple
At one time there was a great relationship between Google and Apple. Apple’s managing board member was the CEO of Google. In 2005, a major agreement was signed between the two companies Google is the default search engine for the Mac computer browser Safari. When the iPhone came on the market in 2006, Google was the default search engine for the iPhone. Since then, the relationship between Google and Apple has been getting better and better. However, their relationship did not last long. Apple did not know that Google was thinking of more than just search engines.
Google vs Apple
After a long and friendly relationship, Google launched the Android operating system in 2008 to directly challenge Apple’s business. The following year, Google’s then-CEO resigned from Apple’s board. The two companies finally parted ways, day Google started bringing Android phones to market and opened up services like Apple, App Store, and Siri to users that were powered by Microsoft’s Bing, not Google. Until 2016, Bing was Apple’s search engine.
The new agreement between Google and Apple
In 2016, the agreement between Apple and Google was implemented again. As a result, both companies benefit greatly. Where Google was not able to keep up with Facebook’s revenue, the deal took Google back to its place. Google’s search and advertising revenue on billions of Apple devices once again put the company ahead of everyone else.
Apple also benefits in the same way. With the advent of Google in Safari, Siri, and Spotlight, the search results of all these services have become better and users use these services. At the same time, Apple earns 15% to 20% of their annual revenue from Google Ad. Moreover, having Google also increases the possibility of income from the services.
The risk of a Google-Apple deal
All of this money and search traffic from Google could be at risk due to various lawsuits filed recently. In October, the U.S. Department of Justice filed a lawsuit against Google over antitrust. The government alleges that Google is acting as the exclusive gate-keeper of the Internet and that it alone is harming consumers, advertisers, and competing technology companies.
According to the lawsuit, the Department of Justice said Google maintained its dominance through a monopoly business, such as a partnership with Apple. At the same time, the Justice Department said that the value of the agreement between Google and Apple was eight to 12 billion. A Google spokesman, however, declined to comment on the deal. Google has denied the allegations in a statement issued Friday stating “Similar, baseless allegations concerning Google’s intelligence have been made more than once.
Even if there are other search engines in the market, they will never be like Google, so Apple will get more in this partnership. Although it is heard that Apple is working with its own search engine. However, it is possible that Apple and Google are planning to cancel the agreement through antitrust lawsuits.
Copyright @ srraihan