The US v. Google antitrust trial is about many things, but more than anything, it’s about the power of defaults. Even if it’s easy to switch browsers or platforms or search engines, the one that appears when you turn it on matters a lot. Google obviously agrees and has paid a staggering amount to make sure it is the default: testimony in the trial revealed that Google spent a total of $26.3 billion in 2021 to be the default search engine in multiple browsers, phones, and platforms. From a report: That number, the sum total of all of Google’s search distribution deals, came out during the Justice Department’s cross-examination of Google’s search head, Prabhakar Raghavan. It was made public after a debate earlier in the week between the two sides and Judge Amit Mehta over whether the figure should be redacted. Mehta has begun to push for more openness in the trial in general, and this was one of the most significant new pieces of information to be shared openly.
Just to put that $26.3 billion in context: Alphabet, Google’s parent company, announced in its recent earnings report that Google Search ad business brought in about $44 billion over the last three months and about $165 billion in the last year. Its entire ad business — which also includes YouTube ads — made a bit under $90 billion in profit. This is all back-of-the-napkin math, but essentially, Google is giving up about 16 percent of its search revenue and about 29 percent of its profit to those distribution deals.
