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Feb122013

Google Pays $1 Billion to be a Default Search Engine on iOS

Google pays to certain companies to be “default search provider” most notably Mozilla with its Firefox web browser. Now, a report suggests, that the search company will pay Apple $1 billion in 2014 to be the default Internet search provider on iOS devices, including the iPhone and iPad.

According Scott Devitt, an analyst at Morgan Stanley, “Thirty-one percent of Google’s traffic acquisition costs will go toward Apple in 2014. However, Mozilla will also see the amount it receives from Google grow.”

Devitt forecast that “Mozilla will pick up $400 million in 2014 from Google, a 33 percent increase from this year,” while “Google will spend a total of about $3.5 billion to make its search engine the default in third party software products,” he said.

In other news, during the Grammy Awards, Google promoted its Apple’s Siri competitor Google Now.

The television commercial titled “Live in the Now” featured Google Now on the Nexus 4 highlights a range of uses, “from language translation in Paris to transportation information in LA” — all without conducting a search.

Google Now is available on devices featuring the “Jelly Bean” Android 4.1+.

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