Apple charges Google a huge sum of money for the right to be the default iOS search engine.
(CCM) — Apple will force Google to pay it an eye-watering $3 billion for the privilege of being iOS's default search engine, according to a CNBC report. The payment will be a three-fold increase over the $1 billion that Google reportedly paid Apple in 2014 to secure the top spot for its search engine, the report says. If the figures are correct, then Google's payments will account for a large proportion of Apple's large and growing services business — Apple noted recently that it expects its service business will soon be big enough to be a Fortune 500 company in its own right.
The report points out that Apple's service business growth could be at risk if Google decides to stop paying to be the default search engine on iOS. It may do this if it believes that there is no credible alternative to its own product, but it also notes that 50% of Google's mobile search revenue comes from iOS devices, so Google might be unlikely to put that at risk.
Apple already uses Microsoft's Bing as the default search engine for Siri, iOS's intelligent assistant. Given the failure of Microsoft's own mobile operating system, it is possible that the company could offer Apple an even higher sum to replace Google with Bing on its mobile devices at some point in the future.
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