Ever wonder why Google’s search bar is still on the iPhone, despite the two companies being highly competitive in the smartphone market?
It’s because Google paid Apple a whopping $1 billion to do so.
That’s per a Bloomberg Business review of court documents recently made public stemming from Oracle’s copyright lawsuit against Google.
According to Bloomberg, Google gets a cut of whatever revenue Apple makes from the search bar being used on Apple devices, a split that Oracle lawyer Annette Hurst said “at one point in time the revenue share was 34 percent.” However, court documents do not specify whether that number represented the amount kept by Google or paid to Apple.
What’s striking about this isn’t only that the two competitors are profiting from one another but that Apple CEO Time Cook has publicly come out against Google’s advertising platform, calling it a breach of privacy. That’s the same advertising platform that Apple profits from, according to the transcripts.
The transcripts of the court hearing are no longer available online.
“The specific financial terms of Google’s agreement with Apple are highly sensitive to both Google and Apple,” Google said in its Jan. 20 filing, according to Bloomberg. “Both Apple and Google have always treated this information as extremely confidential.”
The court case the transcripts originate from is a copyright lawsuit filed by Oracle against Google dating back to 2010. Oracle says Google used its Java software to develop its Android operating system without ever paying for it, and Oracle is now seeking damages that may surpass $1 billion.