Being the default iOS search engine could cost Google 1 billion in

first_imgEven though it often feels like there isn’t anyone else in the web search game (sorry, Microsoft) due to the breadth of Google, and even though that very same breadth often makes Google feel like an unstoppable giant that bows to no man or corporation, it’s sometimes refreshing to know that even giants have to answer to someone.Google is the default search engine on iOS, but Apple doesn’t see that as doing Google a favor, or as some sort of friendly team-up — Google has to pay Apple for that privilege. A new report by Morgan Stanley speculates that Google could end up paying an exorbitant amount of money to remain the default search engine on iOS in 2014.Back in 2009, Google ponied up $82 million for its search engine to be default on Apple’s mobile operating system. Now, Morgan Stanley’s report says that Google could end up paying around one billion bucks to keep their search product there. If that seems like a ton of money, it’s most likely not a bad deal for Google — even though just four years ago it only cost Google a fraction of the reported 2014 price. Google makes the majority of its money from search, so it can’t lose out on being the default engine on devices with the kind of market penetration Apple has.As Microsoft pushes Bing on the world — with it being the default search engine on the Xbox 360 and Surface, and Nokia and BlackBerry phones — Google has to do what it can to remain default on premiere devices. As for why Apple would consider switching, it’s no secret that Google and Apple are frenemies — in this case, competitors that also remain partners — and who wouldn’t love to kick an enemy to the curb? However, if the report ends up being accurate, Apple receiving one billion dollars for simply staying the course is a very easy way to make one billion dollars.last_img

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