Google Willing to Pay Apple Rp 216 Trillion for iPhone

in #google3 years ago

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Every year Google is willing to spend large amounts of money, so that its search engine can become the default choice on iPhone devices and other Apple gadgets. In 2020, for example, Google reportedly paid Apple 10 billion US dollars or around Rp. 144.2 trillion. This year, the cost is reported to have increased to US$15 billion or around Rp. 216.3 trillion. This large amount of money is the Traffic Acquisition Cost (TAC) that Google pays to Apple to get traffic to its search engine.
In the report, it is also stated that in 2022 Google's costs will increase to 20 billion US dollars, or around Rp. 260 trillion to Rp. 288 trillion.
Analyst from Bernstein Research, Toni Sacconaghi said that the big cost to be paid by Google to Apple is so that Apple does not turn to competing search engine companies, such as Microsoft, which has the Bing search engine. "Based on the results of our previous research, Google is likely willing to pay this to make sure Microsoft won't beat it," Sacconaghi said. While on the other hand, the income that Apple receives from this fee will also be used as evidence to its investors that Apple can earn profits outside of product sales. Sacconaghi added that there are two potential risks from the increase in costs.
The first is regulatory risk, which means that Google may lose its license to continue operating. Even so, he stated that this might not happen in the near future.
The second risk is that Google could ask Apple to lower prices or even stop paying these high fees.
Google itself has faced a lawsuit related to its efforts to make Google Search the default search engine on Apple devices. The US Department of Justice (DOJ) sued Google on charges of monopolistic practice. In the lawsuit filing, the DOJ alleged that Google paid Apple $8-12 billion to make its search engine the default choice on iPhones and other Apple gadgets. Because, according to the DOJ lawsuit, Apple devices are one of Google's biggest markets. Mentioned that Google estimates that nearly half of its search engine traffic comes from Apple devices.

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