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Apple Receives 1/3 of Ad Revenue from Google on Safari

New Revelations in Google’s Trial: Tech Giant Discloses 36% Ad Revenue Share with Apple’s Safari

In the ongoing US court trial where Google faces monopoly allegations, a recent revelation in court highlighted the extent of Google’s financial relationship with Apple. An expert witness representing Google disclosed that the company directs 36% of its advertising revenue generated from Apple’s Safari web browser back to Apple. This financial arrangement is a focal point in the monopoly case, with prosecutors arguing that such dealings unlawfully constrain competition.

The disclosure of the specific share of ad revenue reportedly led Google’s lead lawyer to “visibly cringe,” according to Bloomberg. Throughout the trial, Google has consistently asserted that its dominance in online searches is a result of offering a superior product.

The trial, initiated by the US Department of Justice in September, has been conducted behind closed doors to safeguard trade secrets. However, some details have surfaced, indicating that Google paid over $26 billion to various companies, including Apple, Samsung, and Mozilla, to secure its position as the default search engine. Analysts estimate that Apple alone received more than $18 billion from these payments.

Professor Kevin Murphy from the University of Chicago, a witness in the trial, argued that these substantial sums paid by Google and its parent company, Alphabet, underscore the intense competition in the market. The trial, featuring notable figures like Alphabet chief Sundar Pichai and Microsoft boss Satya Nadella, is expected to conclude in the coming days.

Prosecutors are pushing for severe penalties, including an end to anti-competitive practices, and a ruling against Google could have significant implications for the broader tech industry. While a breakup of the company is a possibility, Judge Amit Mehta, overseeing the proceedings, is not expected to deliver a verdict until early next year.

by Paul Britton

Full-time CBG author covering everything from business to wellbeing news, in Cyprus. and abroad.


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