Google Paid $26.3B in 2021 for Default Search Engine Status on Browsers and Devices Amid US Antitrust Trial
Google executive Prabhakar Raghavan reveals a $26.3 billion payout to partners including Apple to maintain Google's top spot in online search, with critics alleging such practice stifles competition. Despite efforts geared toward continuous innovation, Google's dominance faces growing risk of irrelevance among younger users who see the platform as dated, likening it to "Grandpa Google".
- Google spent a reported $26.3 billion in 2021 to maintain its default search engine status on various partners' browsers and mobile devices, with Apple being a likely major beneficiary.
- This payment has been disclosed amid a federal antitrust trial against Google, with the U.S. Justice Department alleging that the tech giant's preservation of its monopoly position in general search, driven by its influence, excludes competitors from crucial distribution channels.
- While Google's practices have been criticized as stifling competition, the company argues for the validity and legality of the revenue share agreements and emphasizes the ease with which users can change their default search engine.
- Possible implications of the trial's outcome could substantially affect Google and the tech industry at large, potentially disrupting current relationships and contracts with partners like Apple and wireless carriers.
- Despite these ongoing legal concerns and allegations, Google asserts its continuous efforts towards product innovation and competitiveness to keep younger users engaged and maintain its market relevance.