An Alphabet witness revealed on Monday during a public court hearing that Google is paying Apple more than a third of its search-related advertising revenue from Safari. This is the first time a precise figure has been given, and it reveals just how beneficial the agreement between the two companies has been. The revelation was an unexpected one, coming from expert witness Kevin Murphy, a professor of economics from the University of Chicago.
At Monday's trial, Alphabet witness Kevin Murphy, a professor of economics from the University of Chicago, revealed the previously undisclosed figure that Google pays Apple more than a third of its search advertising revenue from Safari under the terms of their agreement. Both Google and Apple have tried to keep this information private, citing competitive concerns. The reaction to Murphy's testimony from Williams & Connolly antitrust partner John Schmidtlein was one of visible discomfort, according to Bloomberg News. This deal has been at the center of the trial, described by Judge Amit Mehta as the "heart" of the case, and is noticed by Wall Street analysts such as Toni Sacconaghi, who estimates that by 2023 Apple will see $19 billion in revenue from the agreement.Google and Apple have not commented publicly on the situation, though at the trial, Alphabet CEO Sundar Pichai defended such agreements. Microsoft CEO Satya Nadella has been vocal against them, testifying in October that despite negotiations with Apple over a default deal for the Bing search engine, he was unable to come to an agreement - and that this notion of an "open web" is nothing but a farce.
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