Google paid $1 billion to Apple so its search would stay on iPhones

In the smartphone arena, Apple and Google are rivals -- but that doesn't mean they can't have a symbiotic relationship. Longstanding rivalry in mind, many people have questioned why Apple has retained Google as the default search choice on iPhones. The reason is that money talks.

Transcript of a copyright case involving Google and Oracle show that the search giant paid Apple $1 billion in 2014. An agreement is in place that sees Google paying Apple a percentage of the revenue it generates through iOS devices. This is something that has been rumored for some time, but neither Apple nor Google has commented on.

The news comes via Bloomberg which claims Google shares up to 34 percent of its revenue with Apple. Court transcripts from last week show that the arrangement was revealed by Oracle attorney Annette Hurst. Court papers also show that Google tried to get the judge to strike details of the arrangement from the records. The transcript shows that lawyer Robert Van Nest said:

That percentage just stated, that should be sealed. We are talking hypotheticals here. That's not a publicly known number.

The request was blocked, but Apple and Google made a separate appeal on 20 January, saying that: "The specific financial terms of Google's agreement with Apple are highly sensitive to both Google and Apple. Both Apple and Google have always treated this information as extremely confidential".

Bloomberg reports that:

The transcript vanished without a trace from electronic court records at about 3 p.m. Pacific standard time with no indication that the court ruled on Google’s request to seal it.

Apple and Google remain tight-lipped about their relationship.

Photo credit: NuOilSuwannar / Shutterstock

~ Mark Wilson

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