New Delhi: Alphabet’s CEO Sundar Pichai recently confirmed that the company pays a hefty 36% of its revenue to Apple for the privilege of being the default search engine on Safari browsers. This revelation came to light during the ongoing antitrust case initiated by Epic Games in the US. Pichai, in response, emphasized the diverse nature of agreements, comparing the situation to “apples and oranges” while asserting that Google fiercely competes with Apple.
Intriguingly, an Epic Games attorney accused Google of paying Samsung significantly less than Apple for the same arrangement, to which Pichai conceded that such variations were “possible.” When pressed for the exact amount paid to Apple, Pichai disclosed a figure exceeding $10 billion, though the attorney argued it was a staggering $18 billion.
Pichai’s recent appearance in Washington, D.C. centered around Epic Games’ allegations that Google stifled competition and innovation through its dominant search engine. Pichai defended Google’s practices, highlighting the company’s contribution to more affordable smartphones by offering Android for free to manufacturers like Samsung in exchange for featuring Google’s search engine and services on their devices, distinguishing it from Apple’s approach.
Amidst the legal battles, Google faces dual lawsuits from the US Justice Department for alleged anti-competitive practices. Epic Games additionally accuses the tech giant of unlawfully maintaining a monopoly via its Google Play Store. Pichai also admitted that Android has faced challenges in the tablet market, citing a past instance where a lack of compelling apps affected market success. This revelation aligns with reports from 2019, indicating Google’s abandonment of two tablet projects and the reassignment of related employees to different endeavours.