Google paid $26 billion to be default search engine in 2021 – Bloomberg News
Google paid a staggering $26.3 billion to secure its position as the default search engine on web browsers and mobile phones in 2021, according to a report cited by Bloomberg News. This substantial payment, as revealed during the Justice Department’s antitrust trial by senior executive Prabhakar Raghavan, marks a substantial increase from 2014 when the amount was much lower. Google’s total revenue from search advertising for 2021 was $146.4 billion. Raghavan noted that these payments for default status represented a significant cost for the company.
Google’s justification for these payments revolves around revenue sharing agreements, asserting their legality and emphasizing investments made to maintain competitiveness in the search and advertising sectors. They also argued that users have the freedom to switch to alternative search providers if they are dissatisfied with the default settings.
This revelation came amidst Google’s reluctance to disclose such financial figures, as they believed it could negatively impact their ability to negotiate contracts in the future. However, Judge Amit Mehta, presiding over the case, ruled that the numbers should be made public. Google has not yet responded to Reuters’ request for comments on this matter.
In summary, Google’s substantial payments to maintain its default search engine status highlight the immense value placed on this positioning in a highly competitive industry.
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