The Justice Department’s antitrust case against Google revealed more details about the tech giant’s business practices. Google has reportedly downsized its payment to Verizon in 2020 after negotiating its agreement with the largest US mobile carrier. Google pays a sum of money to Verizon every year in order to be the default search engine on Android phones sold by the telecommunication company.
According to Justice Department attorney Jeremy Goldstein, Google has reduced Verizon’s share of revenue earned through searches on Android phones from 20% to 10% in 2020. Google executive Adrienne McCallister renegotiated the deal with Verizon. While McCallister confirmed the new deal, he didn’t reveal how much Google actually pays to Verizon.
It remains to be seen how Verizon agreed to reduce its share of search revenue. A Verizon executive already testified that they didn’t seek new deals with other search engines when Google asked for renegotiation. Other search engines like Microsoft Bing could be a potential replacement for Google.
Google pays billions of dollars a year to different companies to stay as the default search engine.
The US Justice Department’s probe into Google revealed that the tech firm shares a part of its search revenue with Android OEMs. Google reportedly does this to encourage manufacturers to release more security patches for Android devices. In response, CEO Sundar Pichai announced the company is just doing business, and there’s nothing wrong with current practices.
The DOJ is now alleging that Google’s payment to various companies allows it to maintain its monopoly in the search and advertising market. Similarly, the Japan Fair Trade Commission scrutinized Google over being the default search engine on Android devices and Chrome browser.
Google spends piles of money each year to stay the default search engine on operating systems, bundled devices, browsers, etc. In 2021, the company paid roughly $26 billion to various companies to maintain its reign.
Microsoft CEO Satya Nadella formerly said Google’s business practices are crushing Bing as a business and a product. Nadella also noted Microsoft is ready to pay over $15 billion to Apple to become the default search engine on Safari. It’s worth noting that Google currently pays over $20 billion to Apple.
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