In recent court proceedings related to the Epic Games lawsuit, Google’s CEO Sundar Pichai disclosed significant information about the company’s financial dealings with Apple. Pichai confirmed that Google pays a substantial 36 percent of its advertisement revenue to Apple, shedding light on a closely guarded industry secret.
As reported by CNBC, Pichai emphasized the fierce competition between Google and Apple, revealing that Google has allocated a staggering $49 billion for traffic acquisition costs in 2022. When questioned about the disparity in payments to its Android hardware partner Samsung, Pichai admitted uncertainty about the specific terms but acknowledged the possibility.
The revelation of the 36 percent payment figure came during questioning by Kevin Murphy, a University of Chicago economics professor, responding to queries from Alphabet Inc.’s lead attorney. Pichai, in response to an Epic Games attorney, disclosed that the amount paid to Apple exceeded $10 billion.
This disclosure follows the backdrop of the United States Department of Justice’s accusations against Google for leveraging its financial might to maintain dominance in the search market. Notably, in 2021, Google reportedly paid Apple a substantial $18 billion, as per the New York Times.
These revelations underscore the intricate financial relationships within the tech industry, with Google’s advertisement revenue sharing arrangement with Apple taking center stage in the ongoing legal battle with Epic Games.
