Google is nonetheless paying Apple billions for the privilege of remaining the default search engine on its web browser Safari, based on a brand new report from the UK Competitions and Markets Authority (CMA). Within the UK alone, the search large is stated to have paid Apple a “substantial majority” of the £1.2 billion (circa $1.5 billion) that went in direction of reinforcing Google’s dominance within the search market last 12 months. Nonetheless, the CMA believes offers equivalent to this, that allow Google to secure what is known as ‘default position’ on net browsers and different platforms, might quantity to a breach of competitors regulation. In response to the report, the arrangement between Google and Apple poses “a significant barrier to entry and expansion” for rivals within the search market.
Browser wars
Between them, based on statcounter.com, Apple and Google are liable for more than 80% of the worldwide browser market share, with Google Chrome holding 65.47% and Safari 16.97%. The UK watchdog, then, is cautious about permitting Google to cement its present dominance within the search engine market any additional with its ongoing association with Apple.
“Google has negotiated agreements with Apple and lots of the largest cell phone producers under which it pays a share of search promoting revenues to those companions in return for Google Search occupying the default search positions on the system,” reads the report.
“Given the influence of preinstallations and defaults on cellular gadgets and Apple’s important market share, it is our view that Apple’s present preparations with Google create a major barrier to entry and growth for rivals, affecting competitors between search engines on mobile.”
Rival search choices embody Microsoft-owned Bing, Verizon-owned Yahoo and DuckDuckGo, every of which additionally pays Apple a payment to be provided up as a search choice to users. In response to analyst estimates, Apple takes in circa $9 billion per year in licensing income, roughly 80% of which stems from its relationship with Google. To rectify the market imbalance, the CMA has advised capping the extent to which Apple can profit from such preparations, or giving customers a transparent selection of default engines like google once they first boot up Safari.
Apple, in the meantime, informed the watchdog that measures of this type would show “very costly”.