Google pays more than $10 billion per year for the privileged positions in a year to Apple and other companies to maintain its monopoly in the search engine market. The US Department of Justice (DoJ) highlighted this fact during the court procedure. This accusation on Alphabet Inc’s Google was made during the opening day of the antitrust trial. As per the media reports this is the biggest case in the US in more than two decades, underway in Washington.
Justice Department lawyer Kenneth Dintzer said that this case is about the future of the internet and whether Google will ever face meaningful competition in search.
Dintzer told Judge Amit P. Mehta, who is presiding over the case that Google paid the said $10 billion amount every year to Apple and others to secure its search engine’s default status on phones and web browsers. He also highlighted that Google is monopolizing and hampering the startups before they have a chance to grow in the global search engine sphere.
Google is manipulating the search market and the US government is in the opinion that the tech giant gained domination in the search market using ‘Unfair Means’. In addition to this during the court procedure it is said that Google has forged exclusivity contracts with device makers, mobile operators and other companies that left rivals with little to no chance of standing any competition.
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The monopoly in dominating the search market by paying hefty amounts of money to global tech giants hampering the growth prospects of many companies who want to have their presence in this genre. Companies like Yahoo, Safari, Mozilla and Bing are still facing tough competition in case of digital search engagement.
According to Kinsta report on Search Engine Market Share Who’s Leading the Race In 2023, Google’s market share fluctuates between 86% and 96%, depending on the location. It has dominated the search engine market share since it was introduced in 1997. Its global search engine market share, as of June 2022, stands at 91.88%.
What is Google Search Engine Market Share as per Kinsta report:
- Google dominates the search engine market share, averaging an 86–96% market share worldwide.
- Google’s global search engine market share was 91.88% as of June 2022.
- Baidu reigns supreme in China with a 75.54% market share.
- Unlike other countries, the search market in Russia has two main players: Google and Yandex.
- More people use Google on their mobile devices than on desktop computers (95% versus 85%).
Dintzer during the court hearing also stated that over the last decade, Google created a “feedback loop”, in which its domination grew manifolds. “Through this feedback loop, this wheel has been turning for more than 12 years. It always turns out to Google’s advantage.”
While responding to the allegations in the court, Google’s attorney John Schmidtlein said: “Apple repeatedly chose Google as the default because Apple believed it was the best experience for its users.”
Google pays $10 billion a year to Apple and others: What are the important allegations made during the legal procedure
- WEAPONIZED SEARCH: The use of default agreements to discourage rivals and exercised its market power by blocking Apple from pursuing options that were better than Google as the default browser on its computers, phones and other devices.
- Apple first licensed Google for use in its Safari search engine in 2002 and three years later, Google approached Apple to propose the revenue share agreement
- In 2007, Apple wanted to offer a choice screen that would have allowed users to pick between Google and Yahoo. But Google responded via email, “No default placement, no revenue share,” he said. “This is a monopolist flexing,” and Apple had no choice but to cave to Google.