Google will pay Apple about $3 billion this year to remain the default search engine on iOS devices.

SAN FRANCISCO: Google will pay Apple nearly $3 billion this year to remain as the default search engine on iOS devices, US-based research and brokerage firm Bernstein has said. According to a note to investors on Monday, Google has increased the amount this year — from $1 billion three years ago to $3 billion this year — and Google’s licensing fees make up a large bulk of Apple’s services business. “Court documents indicate that Google paid Apple $1B in 2014, and we estimate that total Google payments to Apple in FY 17 may approach $3B,” CNBC quoted analyst A.M. Sacconaghi Jr. as saying.Source: yahooSacconaghi says that Google might choose not to pay Apple any licensing fee if it feels confident enough in the popularity of its search engine. That would mean that Apple would have no other choice but to include it as the default search engine option anyway. He also notes that iOS devices contribute nearly 50 percent of Google’s mobile search revenues. It’s possible that it might be too risky for Google to walk away from such a deal. Source: digit.in

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