Google has search distribution deals with Apple, Mozilla, Samsung, and many other companies and platforms. The full cost of those deals — $26.3 billion in 2021 — was just revealed for the first time.
The US v. Google antitrust trial is about many things, but more than anything, it’s about the power of defaults. Even if it’s easy to switch browsers or platforms or search engines, the one that appears when you turn it on matters a lot. Google obviously agrees and has paid a staggering amount to make sure it is the default: testimony in the trial revealed that Google spent a total of $26.3 billion in 2021 to be the default search engine in multiple browsers, phones, and platforms.
This is all back-of-the-napkin math, but essentially, Google is giving up about 16 percent of its search revenue and about 29 percent of its profit to those distribution deals. 'Google is giving up about 16 percent of its search revenue and about 29 percent of its profit to those distribution deals' Most of that money, of course, goes to Apple.
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