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.
Google is facing a historic legal battle against the U.S. government in a generational antitrust case that questions the company's dominance in internet search and its contracts with device makers, including a lucrative deal with Apple.
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 allegedly paid billions of dollars to key companies to maintain its search engine as the default on computers and mobile devices, making it difficult for smaller rival DuckDuckGo to grow its market share, according to testimony by DuckDuckGo CEO Gabriel Weinberg at a trial investigating alleged antitrust violations by Google.
DuckDuckGo's CEO testified that it is difficult for users to switch from Google as their default search engine due to Google's status as the default option on many devices, a key argument in the Justice Department's antitrust trial against Google.
Apple's latest iPhone software update, iOS 17, now allows users to select a search engine other than Google's when browsing in private mode, addressing the issue of difficulty in switching search engines that has been at the center of the US government's antitrust suit against Google.
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 executive Eddy Cue testified in the US v. Google antitrust trial, stating that Apple believed in protecting user privacy and that Google was the best search engine option, while the Justice Department questioned whether Apple's choice was based on economics or the best product.
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.
Apple has the ability to create its own search engine, potentially rivaling the revenue from the Apple Watch market, due to its existing search engine capabilities in services such as the App Store, Maps, Apple TV, and News.
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.
Apple has the potential to compete with Google in building a search engine, as it has a strong search team and has developed a next-generation search engine called "Pegasus," but currently, Apple benefits from the $15 billion annual payment it receives from Google to keep Google Search as the default on Safari.
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.
Apple considered replacing Google with DuckDuckGo as its default search engine in private browsing mode, according to recent testimony by DuckDuckGo CEO Gabriel Weinberg in the Department of Justice's antitrust case against Google.
Apple may have to push harder into artificial intelligence (AI) development to keep up with Google, who is rolling out new devices and advancing AI connections, potentially pulling users away from Apple; however, Apple is already heavily into AI development and is likely to advance at a similar pace as Google.
Google's payment to Apple for maintaining its position as the default search engine on iOS devices is estimated to be between $18 billion and $20 billion per year, according to financial advisor Bernstein, with the deal accounting for 14-16% of Apple's annual operating profits; however, the ongoing antitrust trial against Google could put this agreement at risk.
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.
Google CEO Sundar Pichai expressed concerns about the optics of Google's deal with Apple, which made Google the pre-selected search option on Apple's Safari browser, according to emails introduced as evidence in the Justice Department's antitrust case against Google.
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.
Google CEO Sundar Pichai expressed concerns about the lack of choice in Apple's pre-selected search option on the Safari browser, according to emails introduced as evidence in the Justice Department's antitrust case against Google.
Google could be paying Apple between $18 billion to $20 billion a year to maintain its status as the dominant search engine on the iPhone, potentially generating 14-16% of Apple's annual operating profits, but this agreement may be at risk due to an ongoing antitrust suit.
If regulators win the antitrust trial against Google, it could lead to significant changes that diminish the dominance of the search engine and open up new avenues for competition and consumer choice in online services.
Google has been concerned about Apple's potential expansion into internet search, and has been working on strategies to prevent it, including developing its own version of Apple's search tool and leveraging a European law to undermine Apple's control over the iPhone.
Google reportedly paid Apple approximately $18 billion in 2021 to be the default search engine on Apple devices, a deal that not only grants prime placement to Google but also prevents Apple from developing its own search engine.
Google executives explored using EU law to undermine Apple's power and reduce the payment they make to Apple to maintain their default search engine status on Apple devices, as part of an antitrust case brought against Google by the Department of Justice.
