The number is a more granular look into how much Google pays partners, including Apple, to be the default search engine on their products.
Google CEO Sundar Pichai and Apple CEO Tim Cook listen as U.S. President Joe Biden speaks during a roundtable with American and Indian business leaders in the East Room of the White House in Washington, D.C., on June 23, 2023.paid $26.3 billion to be the default search engine on mobile phones and web browsers in 2021, according to a slide made public Friday in a federal antitrust trial against the company., to be the default search engine on their products.
The $26.3 billion figure does not represent the payments to any one company, but Apple likely represents the largest recipient. Bernstein previously estimated that"Google pays billions of dollars each year to distributors—including popular-device manufacturers such as Apple, LG, Motorola, and Samsung; major U.S.
The slide included numbers dating back to 2014, when Google booked revenue of roughly $47 billion for the division and paid about $7.1 billion for the default status. That means revenue for Search+ roughly tripled between 2014 to 2021, while this portion of TAC costs nearly quadrupled. While Google regularly reports overall TAC, that number also includes the amount Google pays to network partners for ads shown on their properties, according to its 10-K filing with the Securities and Exchange Commission.
The other portion of the overall TAC figure Google reports in earnings consists of the payments it makes to "distribution partners who make available our search access points and services," according to the 10-K. Google says its "distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers." This is the portion of TAC that appeared to be represented by the slide, which referred only to Search+ revenue.
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