Google Allocates 36% of Search Ad Revenue to Apple

Alphabet's primary economics expert revealed on Monday that Google allocates 36% of its search advertising revenue made through the Safari browser to Apple.

These numbers were disclosed by Professor Kevin Murphy during his testimony in a recent antitrust trial, according to Bloomberg's report.

This disclosure, intended to be confidential, clearly disconcerted Google's litigator John Schmidtlein.

Since 2002, Google and Apple have had a partnership making Google the default search engine on Apple's Safari.

This deal is crucial for Google as it determines the search engine for the highly-used iPhone in the U.S.

Both companies objected to making details public, citing potential harm to Google's competitiveness.

The Justice Department is using this agreement as evidence in its antitrust case, claiming it showcases Google's illegal dominance in search engine and advertising markets.

The Deal Between Google and Apple Could Be at Risk

The courtroom revelation highlights the complex dynamics and regulatory scrutiny surrounding major tech partnerships, shedding light on potential antitrust concerns. 

In October, reports showed that Google pays Apple up to $20 billion a year to be the primary search engine on the iPhone, potentially affecting the ongoing civil antitrust lawsuit against Google.

According to financial advisory firm Bernstein, there's a chance that the federal court might decide unfavorably for Google, potentially resulting in the end of the agreement.