Googles Revenue Secrets Revealed: Alphabet CEO Sundar Pichai confirmed on Tuesday that Google pays Apple 36% of Safari search revenue as part of a default search agreement, a detail central to the Justice Department’s antitrust claims. Pichai’s acknowledgment came during his testimony in a lawsuit filed by Epic Games, the creator of Fortnite. The 36% figure was accidentally revealed by an expert witness for Google during antitrust proceedings in Washington, D.C.
When asked about the accuracy of this detail, Pichai responded, “Thats correct.” The Epic attorney further alleged that Google pays Samsung, Androids major hardware partner, less than half of what it pays Apple, to which Pichai said it was possible but likened the deals to “apples and oranges.” He emphasized that Google competes fiercely with Apple.
The revenue-sharing agreement breakdown between Google and Apple was undisclosed until the accidental disclosure in court by University of Chicago economics professor Kevin Murphy, testifying on Googles behalf. Murphy, responding to questions from Alphabets lead attorney, revealed the 36% figure. Pichai also stated that Google pays over $10 billion to Apple, but the attorney contended the figure is $18 billion.
The legal battles come as Alphabet faces multiple lawsuits, including two by the Justice Department in Virginia and Washington, D.C., related to alleged anticompetitive behavior. Additionally, Epic Games has sued Alphabet, accusing it of maintaining an illegal monopoly with its Google Play store. The company is navigating these challenges amid increasing criticism regarding information transparency in its antitrust trials.
Also read: Alphabet Shines with Googles Search Engine Amid Ad Worries and AI Competition
Our Reader’s Queries
A concealed revenue business model is a method of generating revenue that excludes users from paying for the service or product provided. Google is a prime example of this, as its users do not pay for the search engine. Instead, the revenue is generated through advertising money spent by businesses bidding on keywords. This approach allows for a seamless user experience while still generating revenue through alternative means.
What is the secret of Google success?
Google is a leading innovator in the tech industry, known for its vibrant workplace culture. But what sets them apart are their strategic pillars of success: a profound mission, unwavering transparency, and a meticulous hiring process. These pillars have contributed significantly to Google’s triumph and continue to drive their success.
What is Google’s largest source of revenue?
In 2022, the company achieved its highest annual revenue to date, amounting to a staggering 279.8 billion U.S. dollars. The bulk of this impressive figure was generated through advertising on Google sites and its network.
What makes most of Google’s revenue?
The services provided by the company come at a cost, with their primary source of income being the ads they sell on their search engine. Google reigns supreme as the most dominant search engine globally, and although it’s free to use, advertising accounts for the majority of their revenue.