Apple’s Deal With Google Is a Two-Way Street

Both companies have long preferred to be vague on the details of their arrangement in which Google pays Apple to be the default search engine on its Safari internet browser. Some $4 billion a year is the most conservative view among analysts who have taken a stab at estimating these payments. Rod Hall of Goldman Sachs believes the true number is closer to $9 billion. Whatever the exact figure, it is a lot considering that Apple CEO Tim Cook frequently likes to criticize the advertising-driven business models of his Silicon Valley neighbors. The implication that Apple takes Google’s money with one hand while making the internet giant’s life harder with the other is an interesting one. Google still seems to deem the relationship valuable enough to keep paying up. The company has cited “changes in partner agreements” as the main reason its distribution traffic acquisition costs have jumped 45% so far in 2018. For Google, something in this deal still clicks.