Apple makes $1B to use Google as iPhone’s default search engine

How important is it to be the default place that iPhone users go to find information online?  Apparently a billion dollars important, if you’re a mega search giant.

Google allegedly paid one of their largest competitors handsomely for the privilege of being the default search engine on Apple’s mobile devices in 2014, according to Bloomberg.  The information was found in a court transcript from the long and drawn-out copyright lawsuit that Oracle has against the search engine.  An Oracle attorney explained that the payout was part of a revenue-sharing agreement between Google and Oracle that gives Apple a portion of the revenue Google earns via Apple’s devices.

While Google’s Android operating system powers the majority of mobile devices currently on the market, this deal shows the power of getting their product in front of as many eyes as possible, regardless of who they have to share their profits with in order to do so.

The revenue sharing agreement between the two companies shows the value and importance of partnerships in growing and maintaining a great reputation.  If Google’s search engine is even on it’s biggest competitor’s devices, it must be the best, right?  There’s a lot to be said for the value of being in the hands of billions of people – even if it means you have to pay the competition to get there.  Knowing who to associate with and where to be are two key elements in growing influence and enhancing a successful reputation.

Bloomberg reported that not everyone is happy about the disclosure of this deal.  A Google witnesses statement claiming a 34% revenue share at one point in time was immediately objected to by the search engine’s attorneys, and it was requested that the statement be stricken from the record.  After the judge denied the request, representatives for both companies filed requests through the court requesting the sealing and redacting of the transcript.  According to Bloomberg, the transcript vanished shortly thereafter.

Apparently, the importance of search is very mysterious business.