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Google Pays Apple Billions to Remain Default iPhone Search Engine, DOJ Claims Illegal Monopoly Tactics

  • Google is paying Apple up to $10 billion per year to be the default search engine on iPhones and Safari.

  • Google refused when Apple wanted to give users a choice between Google and Yahoo search.

  • The DOJ claims Google started illegally working to preserve its monopoly in 2010.

  • Google's lawyer argues this case is really about Microsoft's lack of search success, not anticompetitive behavior.

  • The DOJ says this case is about Google facing meaningful competition in the future of the internet.

gizmodo.com
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Apple executives Eddy Cue, John Giannandrea, and Adrian Perica will testify in an antitrust investigation into Google's alleged abuse of its search engine dominance, despite Apple's argument that it would be burdensome; Apple's multi-billion dollar deal with Google is a key aspect of the case.
The US Justice Department has started a 10-week trial against Google, accusing the company of monopolistic practices in dominating the search engine market through its business partnerships, including with Apple, to ensure its search engine is the default on mobile devices.
Google will face a high-stakes antitrust trial brought by the US government and multiple states, which could have significant implications for the tech giant's dominant search business.
The landmark antitrust trial against Google marks a broader reconsideration of the notion that the internet is inherently open and self-regulating, as regulators seek to prevent dominant technology companies from stifling innovation in emerging fields such as artificial intelligence.
The government's antitrust case against Google, which parallels the landmark case against Microsoft 25 years ago, lacks the same cultural impact despite similar accusations of unfair market dominance.
The biggest tech monopoly trial in decades, where the US Department of Justice and state attorneys general will argue that Google violated anti-monopoly law through exclusive agreements, begins on Tuesday.
Google maintains a dominant position in the global search engine market with a 90.7% market share, while its competitors like Bing and Yahoo lag far behind, according to data from Similarweb. However, Google is currently facing a civil antitrust lawsuit by the U.S. Justice Department for alleged anticompetitive practices. Bing, despite its AI-powered version, has not made significant progress in challenging Google's dominance.
The Justice Department's antitrust trial against Google began with claims that the company pursued agreements to be the default search engine on mobile devices, while Google argued that its search engine's quality was the primary reason for such agreements.
Google has made a final attempt to overturn a €2.42 billion ($2.6 billion) EU antitrust fine for market abuse related to its shopping service, arguing that regulators failed to prove its practices were anti-competitive.
The CEO of DuckDuckGo testifies in the antitrust trial against Google, describing the obstacles faced by competitors in effectively competing with the search giant due to its monopoly and deals to make its search engine the default on browsers and platforms.
The Department of Justice has filed an antitrust lawsuit against Google, alleging that the company's billion-dollar deals to be the default search engine on smartphones have created a monopoly, and if the trial is successful, Google may be forced to break up its various businesses.
Apple senior vice president Eddy Cue is expected to testify in court that Apple chose Google as the default search engine on the iPhone because it was the best product and that Apple has revenue-sharing agreements with other search engines, shedding light on Google's licensing agreements and the accusation of monopolizing online search.
Microsoft's Bing search engine has always been just a bargaining chip for Apple in its search-engine wars with Google, according to a Microsoft executive, who also revealed that Microsoft has been trying for years to convince Apple to switch to Bing as the default search engine for iPhones.
A Google executive compared the addictive nature of the company's search engine to that of cigarettes or drugs, as revealed in meeting notes that were initially hidden from the public in the Google search antitrust trial.
Microsoft CEO Satya Nadella testified in the U.S. antitrust fight between the Justice Department and Google, dismissing the idea that it is easy to change defaults on devices and revealing that Microsoft had sought to make Bing the default search engine on Apple smartphones but was rejected.
Microsoft CEO Satya Nadella testified during the US government's antitrust trial against Google, warning of a "nightmare" scenario for the internet if Google's dominance in online search continues, as it could give Google an unassailable advantage in artificial intelligence (AI) due to the vast amount of search data it collects, threatening to further entrench its power.
Apple has turned down opportunities to challenge Google's search engine dominance, including the chance to purchase Bing and make DuckDuckGo the default for Safari's private browsing mode, according to court transcripts unsealed in the US government's antitrust lawsuit against Google.
The antitrust case against Google puts the annual payment it makes to Apple for being the default search engine at risk, which constitutes 14-16% of Apple's profits, but Bernstein analysts believe Apple has options to mitigate the potential impact, such as partnering with another search engine or launching its own.
Apple's long-standing and lucrative agreement with Google to have it as the default search engine on Safari across its products has prevented Apple from developing its own search product and solidifies Google's dominance in the search industry, according to evidence presented in the US v. Google antitrust trial.
Google pays Apple between $18 and $20 billion per year to be the default search engine on iPhones, representing roughly 15% of Apple's annual operating profits, and there is a possibility that federal courts could force Google to terminate its search deal with Apple as part of the Department of Justice's antitrust lawsuit against Google.