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Sunday, November 22, 2020

Here’s why Google may have paid $12 billion to Apple

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Google has been facing some issues with the Department of Justice (DOJ) in the US. The department has filed an antitrust lawsuit against the company and it’s largely based on the deals Google has signed with other tech companies to be the default Search engine and browser on devices. Now, as per multiple online reports, the justice department has alleged that Google paid Apple close to $12 billion to be the default search engine on Apple products.
The numbers, as per the lawsuit, are based on “public estimates”. The DOJ has argued that even though users have the option of changing the default search engine, very few people do and this gives Google unfair advantage and isn’t right for smaller companies competing with Google.
In a blog post, Ken Walker, senior vice president, Global Affairs, Google called the case deeply flawed. “People use Google because they choose to, not because they’re forced to, or because they can’t find alternatives,” he wrote in the blog post.
Walker did admit that Google does pay for its services to be promoted and came up with a rather interesting analogy. “Yes, like countless other businesses, we pay to promote our services, just like a cereal brand might pay a supermarket to stock its products at the end of a row or on a shelf at eye level.”
He further said that there is nothing wrong in the agreements Google has with Apple. “Our agreements with Apple and other device makers and carriers are no different from the agreements that many other companies have traditionally used to distribute software,” argued Walker in the blog post.
The DOJ has alleged that Apple and Google work work on this agreement as “one company.”
Google, meanwhile, said that it’s confident about the lawsuit and stands by its position. “American antitrust law is designed to promote innovation and help consumers, not tilt the playing field in favour of particular competitors or make it harder for people to get the services they want. We’re confident that a court will conclude that this suit doesn’t square with either the facts or the law,” said Walker in the blog post.

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