Google will pay Samsung $3.5 billion to remain the default search engine


Last updated: August 16th, 2017 at 22:49 UTC+02:00

Google has been renewing its licensing deals recently. It was reported a couple of days ago that it would pay nearly $3 billion to Apple just to remain the default search engine on iOS devices. According to a new report out of South Korea, it will also pay Samsung for the same privilege. Samsung is reportedly going to receive $3.5 billion from Google in licensing fees this year.

Google is the default search engine on Samsung devices with its search widget getting prime real estate on the home screen. The amount of search traffic it pulls in just because of this is certainly significant.

$3.5 billion may seem like too big a price to pay for this but the fact remains that Google’s search business still accounts for a large chunk of its revenues. It’s certainly in Google’s best interests to bring in as much search traffic as it possibly can.

It’s just the cost of doing business for Google. It would rather pay $3.5 billion to Samsung so that Google Search remains the default search engine than not having access to the traffic that the world’s largest smartphone vendor can send its way.

Samsung is the leader in terms of smartphone shipments globally after all. For Samsung, it’s a significant increase in licensing revenues so this arrangement is essentially a win-win for both parties.

Via Phone Google
Load comments

Related News

Galaxy Watch 4 is losing YouTube Music exclusivity

  • By Mihai M.
  • 12 hours ago

Your Galaxy phone could start asking you to keep your eyes on the road

  • By Anil G.
  • 19 hours ago

Galaxy Watch 4’s Wear OS advantage became clear to me just ten m …

  • By Abhijeet M.
  • 5 days ago

Sorting through Gmail on your Samsung mobile device just got easier

  • By Mihai M.
  • 7 days ago

Google is bringing Samsung-like foldable optimizations to stock Androi …

  • By Asif S.
  • 1 week ago

All of Google Pixel 6’s best bits seem to be coming from Samsung

  • By Adnan F.
  • 2 weeks ago

One UI 4.0 lets you use icon packs from Play Store, but…

  • By Mihai M.
  • 2 weeks ago

Google Messages could soon learn to remind you to respond to texts

  • By Abhijeet M.
  • 2 weeks ago