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Google Sends A Third Of Safari Ad Revenue To Apple

It has emerged that Google is willing to pay billions of dollars to maintain its status as a top search engine, as the company defends itself against accusations of monopoly in a US court case.

According to the BBC, an expert testifying on behalf of Google stated that the company sends 36% of the advertising revenue it earns on the Apple Safari web browser to Apple.

The core of the monopoly case lies in the relationship between the two firms.

Prosecutors allege that their interactions have unlawfully limited competition. The principal attorney representing Google displayed visible discomfort upon the revelation of the precise share of ad revenue transferred to Apple, as reported by Bloomberg.

Google has maintained that its dominance of online searches is due to having a superior product.

The high-stakes legal proceedings, which commenced in September, involve Google facing off against the US Department of Justice. Numerous aspects of the trial have been kept confidential to safeguard trade secrets.

However, some details have emerged.

Google paid more than $26B to other companies, including Apple, Samsung and Mozilla, to be installed as the default search engine, according to statements heard at the trial.

Analysts on Wall Street have estimated that amounted to more than $18B for Apple alone, as reported by BBC.

During his testimony, University of Chicago professor Kevin Murphy, who disclosed the percentage of advertising revenue Google remits to Apple from Safari traffic, asserted that the substantial amounts paid by Google and its parent company, Alphabet, serve as evidence supporting the argument of intense competition in the market—an assertion also put forth by Google.

The trial is anticipated to conclude shortly, following a series of witnesses, among them Alphabet's CEO Sundar Pichai and Microsoft's leader Satya Nadella. Prosecutors from the US Department of Justice are pursuing substantial penalties, aiming to cease anti-competitive practices.

A ruling against Google could have major implications for the tech industry, even if it falls short of a break-up of the company.

Judge Amit Mehta, who has been overseeing the proceedings, is not expected to rule on the case until early next year.

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