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Alphabet Pays $1B to be the Default iPhone Search Engine

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It's a known fact that Alphabet 's GOOGL Android faces the toughest competition from Apple's AAPL iOS.

So wouldn't it be quite paradoxical to find Google as the default search engine on your iPhone?

Well, a whopping $1 billion deal between the tech giants might explain the paradox.

The Revelation

The deal wasn't made public and came to light in connection with a completely unrelated issue - Oracle's ORCL lawsuit against Alphabet.

A court transcript from this lawsuit was obtained by Bloomberg, showing Alphabet having paid Apple $1 billion in 2014 to be the default search engine on the iPhone.

The companies agreed to share revenues - most probably from search ads - but the percentage was unclear.

As per Bloomberg, both the companies lobbied the court to strike off the details of their search deal from the court documents.

Apparently, Alphabet argued that this deal is "highly sensitive" and asked the court to hide the details of the deal as it believes that information could encumber similar deals with other companies. This sheds light on the fact that the search giant may have gained default status on other platforms as well.

As of now, per Bloomberg, the judge ordered records to be sealed and the transcript of this portion of the court proceedings have been removed from the Internet.

Alphabet currently carries a Zacks Rank #2 (Buy).

Investors may consider Mercadolibre, Inc. MELI as it sports a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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