Alphabet Inc (NASDAQ:GOOGL) Seeks To Press Sanctions Against Oracle Corporation (NYSE:ORCL)


Alphabet Inc (NASDAQ:GOOGL) is currently seeking a positive nod from the Court to press sanctions against Oracle Corporation (NYSE:ORCL) after their lawyer disclosed some confidential information. The confidential information was about the relationship between Google and Apple Inc. (NASDAQ:AAPL)’s relationship. This disclosure was made at a court hearing where Oracle has alleged Google of not paying for the use of its Java software in Google’s Android devices.

According to Oracle’s alleged disclosure, Google is paying Apple a hefty fee to keep it search bar on iPhones. During 2014, Apple received $1.0 billion from Google. The search giant has an ongoing agreement with Apple to pay them a certain percentage of the revenue collected through Apple’s device.

Rumors have always been around on how much Google must pay Apple but there has never been a concrete figure for these. During the Court proceedings, it was disclosed that at one time, the revenue share was 34% though it was not clear whether this was, the amount kept by Google or paid to Apple. Despite this, the disclosure is an evidence of how far Google is willing to go to keep people using their search engine on mobile devices. It is also a reflection of how Apple are benefiting from Google’s advertising-based business model. Which Apple’s CEO, Tim Cook once criticized as an intrusion to privacy.

Google’s attorney, Robert Van Nest, stated that the particular term of the agreement between Google and Apple was highly sensitive to both companies. Both companies have always treated this information with utmost confidentiality. The disclosure has violated a protective order and has also contributed to speculations on the internet; Nest continued.

The disclosure also noted that Google’s Android operating system had generated revenues of approximately $31 billion and a profit of $22 billion since it was introduced in the market.

Oracle has been fighting Google since 2010 on claims that the search engine company uses Java software in its Android devices without paying to Oracle for it. The case had initially suffered a pit stop at the US Supreme Court where Google lost the bid to derail the case. Oracle is currently seeking over $1 billion since it has expanded its claim to cover newer Android versions.