Google loses fight to hide 2021 money pit: $26B in default contracts

Enlarge / Prabhakar Raghavan, a senior vice president at Google (where he is responsible for Google Search, Assistant, Geo, Ads, Commerce, and Payments products), speaks during a 2018 event. (credit: Bloomberg / Contributor | Bloomberg)

On Friday, Google started defending its search business during the Justice Department’s monopoly trial. Among the first witnesses called was Google’s senior vice president responsible for search, Prabhakar Raghavan, who testified that Google’s default agreements with makers of popular mobile phones and web browsers were “the company’s biggest cost” in 2021, Bloomberg Law reported.

Raghavan’s testimony for the first time revealed that Google paid $26.3 billion in 2021 for default agreements, seemingly investing in default status for its search engine while raking in $146.4 billion in revenue from search advertising that year. Those numbers had increased “significantly” since 2014, Big Tech on Trial reported, when Google’s search ad revenue was approximately 46 billion and traffic acquisition cost was approximately $7.1 billion.

Prior to Raghavan’s testimony, Google had been carefully guarding this information. According to Bloomberg, Judge Amit Mehta overruled Google’s objections to revealing the numbers, despite Google’s claims that such transparency could harm future deals.