Google paid Rs 2,19,377 crore in 2021 to be the default search engine across platforms: Report

Alphabet's Google testified during the United States Justice Department's antitrust trial that in 2021, it made payments of $26.3 billion (approximately Rs 2,19,377 crore) to other companies to secure the default status of its search engine on web browsers and mobile phones, as reported by Bloomberg on Friday.

The testimony revealed that the payments for the default status had more than tripled since 2014, according to senior executive Prabhakar Raghavan, who oversees both search and advertising at the company.

Raghavan was quoted in the Bloomberg report as stating that Google's revenue from search advertising reached $146.4 billion in 2021, with the payments for the default setting representing its largest expenditure.

Google has maintained that its revenue share agreements are in accordance with the law and has emphasised its investments to maintain competitiveness in its search and advertising operations. The company has also argued that individuals dissatisfied with default settings have the option to switch to another search provider.

Notably, Google had initially resisted disclosing these payment figures, citing potential harm to its future contract negotiations. However, Judge Amit Mehta, presiding over the case, ruled that the numbers should be revealed, as per the report.

Meanwhile, Google has committed to a substantial investment of up to $2 billion in the artificial intelligence firm Anthropic, as confirmed by a representative from the startup on Friday.

Initially, Google has injected $500 million into Anthropic as part of its investment, and they have also reached an agreement to further contribute an additional $1.5 billion gradually, according to the spokesperson.

Also Read

Google bets big on AR beauty: Virtually trying on beauty products to become better and easier

Google Search rolls out ‘About this Image’ tool to fight misinformation, provide more context on visual content