TIME Companies

Why Google Paid Apple $1 Billion

The figure was revealed in court documents

And you thought you spent a lot on Apple products.

Google paid Apple $1 billion in 2014 so that the company would keep Google’s search bar on its very popular iPhone product, according to court documents reviewed by Bloomberg. That’s before a revenue-sharing agreement that applies to any profits Google makes from the Apple iPhone.

The $1 billion figure, which had never before been made public, was revealed during a copyright lawsuit proceeding between database company Oracle and the search engine giant. Lawyers from Google had requested that the judge in the case keep the $1 billion figure sealed from public view, but the judge denied the request.

The high number underscores just how important smartphones are as a profit portal for tech companies like Google and Amazon.

Fortune has reached out to Apple and Google for comment, and will update the story if the companies respond.

This article originally appeared on Fortune.com

Tap to read full story

Your browser is out of date. Please update your browser at http://update.microsoft.com


Dear TIME Reader,

As a regular visitor to TIME.com, we are sure you enjoy all the great journalism created by our editors and reporters. Great journalism has great value, and it costs money to make it. One of the main ways we cover our costs is through advertising.

The use of software that blocks ads limits our ability to provide you with the journalism you enjoy. Consider turning your Ad Blocker off so that we can continue to provide the world class journalism you have become accustomed to.

The TIME Team