In the recent Google trial about competition issues, a surprising fact emerged. Google spent a massive $26.3 billion in 2021 to make sure it remains the default search engine on various devices like laptops, mobiles, and web browsers. The U.S. Justice Department argues that this huge spending might harm competition in the search engine market.
Insights and Strong Position Of Google
During the trial, Prabhakar Raghavan, Google’s Senior Vice President responsible for search, shared these numbers. He also explained how Google pays companies like Apple to stay as the default search engine. In an interview with The New York Times, Raghavan stressed how important it is for Google to stay at the forefront of the tech industry. He mentioned that falling behind could make Google less important over time.
Amazon as a Tough Competitor Of Google
Raghavan mentioned Amazon as one of Google’s main competitors. He said that Google has stayed ahead of strong rivals like Amazon by investing heavily in research and development. Raghavan believes that Google’s success is due to its high-quality and user-friendly services. He also pointed out that users can choose alternatives like Microsoft’s Bing or DuckDuckGo if they prefer.
Chrome’s Role in Google’s World
A partially redacted internal email exchange provided interesting insights. Jim Kolotouros, the Vice President of Android Platform Partnerships, highlighted the crucial role of Chrome in supporting Google’s search services. He explained that if Chrome’s settings were determined by users and not Google, it would significantly reduce the value of Google’s search services.
Google’s Big Payment to Apple
This substantial investment by Google in staying as the default search engine comes after reports by Bernstein analysts. They revealed that Google paid an estimated $18 billion to Apple in 2021 to keep Chrome as the default browser on various Apple devices. This payment is believed to make up a significant portion, around 14% to 16%, of Apple’s annual operating profits.
The Importance Of Default Settings Of Google
During a hearing in Washington, DOJ attorney Kenneth Dintzer emphasized how vital default settings are. He pointed out that Google places a lot of importance on defaults because they know that most users won’t change them. Dintzer underlined the strategic significance of default exclusivity in the tech industry.