Google Paid $26.3 Billion to Be Default Search Engine: Report

According to Bloomberg News, a top Google executive testified that the company paid $26.3 billion to other companies in 2021 to make Google the default search engine on web browsers and mobile phones. The senior executive, Prabhakar Raghavan, who oversees both search and advertising, also admitted that the amount paid to companies for this purpose has more than tripled since 2014.

Google earned $146.4 billion in revenue in 2021 from search advertising, having paid $26.3 billion, which is the biggest cost the company incurred with respect to default settings. Google did not respond to the inquiry made by Reuters in this regard.

The company has emphasized that the investment was made for competitive reasons, which is legal. The company clarified that revenue-sharing agreements are legitimate, as they are made to keep its search and advertising businesses competitive. The company also said that if customers were dissatisfied with its product, they had the freedom to change search engines.

Google also expressed dissatisfaction in revealing the numbers, arguing that it would harm the company”s ability to negotiate contracts in the future. However, Judge Amit Mehta, who is overseeing the case, insisted that the numbers should be disclosed.