Google Reveals 36% Revenue Share with Apple, Undisclosed Amount with Samsung

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Updated: 3:19 AM, Wed November 15, 2023

Google Reveals Revenue Share Agreements with Apple and Samsung

In a surprising revelation, Google has disclosed the revenue share percentages it offers to Apple and Samsung. During his testimony at an antitrust case brought by Epic Games Inc., Google’s CEO Sundar Pichai confirmed that Apple receives a 36% share of the revenue generated from advertising on Google searches conducted through the Safari browser on Macs, iPhones, and iPads. While the CEO did not disclose the exact percentage shared with Samsung, Epic’s attorney claimed it was 16%.

These revenue-sharing agreements highlight the extent to which Google is willing to pay large sums to secure its position as the default search engine on smartphones. Pichai, however, emphasized that these deals serve different purposes for each company. With Apple, Google pays to be the default search engine, while with Samsung, Google’s payments support the Android ecosystem, which can be licensed by smartphone manufacturers for free.

The disclosure of these revenue shares comes at a critical time for Google, as it faces a legal battle with Epic Games over allegations of monopolistic practices in its app marketplace, Google Play. Epic Games claims that Google has monopolized the Android app distribution market by striking side deals to undermine competition and secure its dominant position. The outcome of this case could have significant implications for Google’s revenue generated through app distribution.

While Google, Apple, and Samsung had initially requested that the terms of their revenue-share agreements remain confidential, they were forced to become publicly known after a US District Judge ruled in favor of their disclosure in the trial. The Apple revenue-share figure was inadvertently revealed by Alphabet’s main economic expert during a separate antitrust trial in Washington.

In defense of Google’s practices, Pichai stated that the company faces fierce competition from app marketplaces operated by Apple and Samsung. He argued that comparing the Apple and Samsung deals is like comparing apples and oranges since they serve different purposes for Google. Despite these revenue-sharing agreements, Pichai made it clear that Google competes vigorously with both Apple and Samsung.

As this legal battle unfolds and the public becomes privy to the inner workings of Silicon Valley, the technology industry faces scrutiny over antitrust concerns. The outcome of the Epic-Google case could force Alphabet to change its app distribution and payment methods, potentially opening the door for alternatives outside of its own app store.

In conclusion, Google’s disclosure of its revenue share agreements with Apple and Samsung sheds light on a previously tightly kept secret in Silicon Valley. The battle between Epic Games and Google over alleged monopolistic practices in the app marketplace underscores the growing concerns about antitrust issues within the technology industry. As the legal proceedings continue, the future of app distribution and competition in the industry hangs in the balance.

Frequently Asked Questions (FAQs) Related to the Above News

When did Google disclose its revenue share agreements with Apple and Samsung?

Google disclosed its revenue share agreements during CEO Sundar Pichai's testimony at an antitrust case brought by Epic Games Inc.

What is the revenue share percentage that Apple receives from Google?

Apple receives a 36% share of the revenue generated from advertising on Google searches conducted through the Safari browser on Macs, iPhones, and iPads.

Did Google disclose the exact revenue share percentage with Samsung?

No, the exact revenue share percentage with Samsung was not disclosed by Google's CEO. However, Epic's attorney claimed it was 16%.

Why does Google pay Apple and Samsung these revenue shares?

With Apple, Google pays to be the default search engine, while with Samsung, Google's payments support the Android ecosystem, which can be licensed by smartphone manufacturers for free.

Why were the terms of the revenue-share agreements made public?

The terms of the revenue-share agreements were made public after a US District Judge ruled in favor of their disclosure in the trial.

What legal battle is Google currently facing?

Google is facing a legal battle with Epic Games over allegations of monopolistic practices in its app marketplace, Google Play.

What implications could the outcome of the Epic-Google case have?

The outcome of the Epic-Google case could potentially force changes in Google's app distribution and payment methods, opening doors for alternatives outside of its own app store.

How does Google defend its revenue-sharing practices?

Google's CEO Sundar Pichai argues that the company faces fierce competition from app marketplaces operated by Apple and Samsung and that the deals serve different purposes for Google.

What are the growing concerns in the technology industry?

The technology industry is facing growing concerns about antitrust issues, as highlighted by the legal proceedings between Epic Games and Google.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Shreya Gupta
Shreya Gupta
Shreya Gupta is an insightful author at The Reportify who dives into the realm of business. With a keen understanding of industry trends, market developments, and entrepreneurship, Shreya brings you the latest news and analysis in the Business She can be reached at shreya@thereportify.com for any inquiries or further information.

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