Prabhakar Raghavan, Google’s Head of Search, disclosed staggering figures about the company’s quest for search engine supremacy in 2021. Google, in its bid to maintain an edge over Bing, invested a jaw-dropping $26.3 billion, securing default search status on prominent platforms.
During the antitrust case proceedings, it was unveiled that Google earmarked substantial portions of this sum to establish default search engine privileges on various platforms, with a significant $18 billion directed towards Apple, solidifying Google as Safari’s primary search engine.
This disclosure followed a heated debate in court, where Judge Amit Mehta emphasized transparency, questioning whether these figures should remain confidential. The U.S. Department of Justice echoed concerns, labeling Google’s massive investment as an unfair advantage, disadvantaging smaller competitors and stifling market competitiveness.
Alphabet, Google’s parent company, disclosed in its latest report that search advertising generated a staggering $44 billion in the last three months and an astounding $165 billion in the past year. Google’s broader advertising business, encompassing revenue from YouTube ads, neared $90 billion. These figures highlighted the enormity of Google’s investment in securing default search status.
This strategic maneuver led to Google sacrificing 16% of its modern search revenue and 29% of its profits, all in the pursuit of dominance. As the antitrust case unfolds, the repercussions of Google’s substantial investment reverberate through the tech industry, sparking intense debates about fairness, competition, and the future of online search.