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How Scott Bessent used financial engineering to finance the $2 trillion deficit while leaving it untouched—and created a $1.45 trillion shortfall

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Tech

You’ll Never Guess How Much Google Pays Apple to Keep its Search Bar on iPhones

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Chris Matthews
Chris Matthews
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By
Chris Matthews
Chris Matthews
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January 22, 2016, 8:27 AM ET
Inside An Apple Inc. Store As The New iPhones Are Released
An Apple Inc. iPhone 6s Plus is displayed for a photograph at an Apple store in Palo Alto, California, U.S., on Friday, Sept. 25, 2015. From Sydney to New York, some of the Apple faithful waited in lines for more than two weeks to be among the first to receive the new iPhone 6s and 6s Plus. Photographer: David Paul Morris/Bloomberg via Getty ImagesPhotograph by David Paul Morris — Bloomberg via Getty Images
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And you thought you spent a lot on Apple products.

Google (GOOG) paid Apple (APPL) $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 (ORCL) 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 (AMZN).

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

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