The government of the United Kingdom is mulling over either tearing up or altering the search engine deal between Google and Apple…
Google pays Apple billions for the privilege of being the default search engine on its devices. In 2018 alone, the search giant paid an estimated $10 billion for the deal. Regulators state that in 2019, Google paid Apple $1.5 billion for their arrangement in the UK. Now, the government is considering intervening.
UK Regulators Considering Breaking Up Apple and Google’s Billion-Dollar Search Engine Deal
UK regulators have been investigating the search deal for some time now. And, have come to the conclusion that it constitutes a serious barrier for others to enter and expand. The UK Competition and Markets Authority explains:
“Given the impact of preinstallations and defaults on mobile devices and Apple’s significant market share, it is our view that Apple’s existing arrangements with Google create a significant barrier to entry and expansion for rivals affecting competition between search engines on mobiles.”
The UK Competition and Markets Authority did offer some solutions to retain their mutual business relationships, obviously not in its current form:
“…enforcement authorities should be given a range of options to address the Apple-Google arrangement, including requiring “choice screens” in which users decide which search engine to set as a default during device setup or restricting Apple’s ability to monetize default positions.”
How the two companies will respond remains to be seen.