As the default search engine, Google will pay Apple $15 billion annually.

Earlier this week, CNBC headlines featured a conversation between research analysts Toni Sacconaghi and AB Bernstein and a special guest. Sacconaghi was present because, according to him, Google will offer Apple money to make Google the default search engine on its iPhones.

Toni Sacconaghi, CEO of the business that conducted the analysis, added that Google forked over $10 billion to $12 billion in 2020 for this purpose. It is expected that Google would fork over close to $15 billion. Even though we knew that Google paid a hefty sum to be Apple's default search engine, this sum was shocking.

Sacconaghi estimated that Google would pay Apple $15 billion in 2021 and $18-20 billion in 2022. If the predictions pan out, Sacconaghi thinks Google will no longer be Apple's default search engine in 2022. Perhaps at a later date, when the price and market risks are lower.

Due to an ongoing bidding war between Google and Microsoft, prime search engine placement comes at a hefty price. In light of Microsoft's plans to create Bing, a search engine designed to compete with Google, it is clear that Microsoft is looking to shake things up. A significant increase could prompt Google to agree to let Microsoft become Apple's primary search provider.

Doubts about Apple and Google's Agreement As a leader in mobile hardware and operating systems, Apple takes a unique stance on data protection. This is why it is impossible to trace your individual preferences in advertising. In light of Apple's policy prohibiting the tracking of individual users without their knowledge or consent, apps can't collect such data.

The phrase "default search engine" suggests that Safari will automatically use Google to answer any queries typed into the address (URL) bar or the search field. Siri also does this for you when you want her to. An Apple representative responded, saying that you can instruct Siri to utilize Bing or DuckDuckGo. Research shows, however, that Apple users don't often switch their default search engine.

In addition, annual surveys have shown that 90% of Apple devices favour using the Safari browser. When comparing the two major mobile operating systems, Android currently has a larger market share than Apple. Apple's Safari is the dominant mobile web browser, accounting for 53% of all mobile web traffic.

As a result, antitrust concerns were raised in the United States due to this deal between Apple and Google. This is why the US DOJ is pushing forward with its current lawsuit, which focuses on 2020.

Google's current position is that poor search quality will ensue if default search engine agreements are regulated. It could potentially raise electrical component prices. Google noted that other manufacturers integrate their tools and apps with Android installations, while Microsoft lets Bing be the default search engine on Windows devices.