Apple and Google Search Agreement Under Scrutiny
Apple Inc.’s agreement to make Google the default search engine for the iPhone has come under scrutiny during an antitrust trial. This agreement has been highly lucrative for both companies. It includes a provision that they will “support and defend” the deal against government scrutiny, as revealed by Apple’s Senior Vice President of Services, Eddy Cue.
The provision for a joint defense was added to the contract in 2016, following Google’s request. Cue explained that he couldn’t directly speak to why it was included, as company lawyers handled it. At that time, the European Union was investigating Google’s dominance in online search.
Apple’s Defense of the Agreement
Cue defended Apple’s arrangement with Google, emphasizing that it was the best choice for customers to have Google as the default search engine. He stated that there wasn’t a valid alternative at the time, and he was uncertain what Apple would have done if the deal had collapsed.
Check Out: Nothing CMF: Buds Pro, Watch Pro, and Power 65W GaN Charger launched in India
Google pays Apple billions of dollars for its position as the default search engine on products like the iPhone. This arrangement has drawn the government’s interest, as the antitrust trial seeks to determine if Google gained its prominence on Apple devices at the expense of competitors.
Closed-Door Testimony and Search Arrangements
Cue stressed that Apple sees no need to develop its own search tool because Google is the best option available. This differs from Apple’s approach in other areas, where it competes directly with Google.
Check Out: Xiaomi Launches Watch 2 Pro and Global Release of Smart Band 8
Part of Cue’s testimony was closed to the public due to sensitive internal company information. He also planned to discuss Apple’s search arrangements with other companies, such as Microsoft’s Bing, Yahoo, DuckDuckGo, and Ecosia. Apple receives a portion of advertising revenue when users choose these search engines as their main option in Safari.
User Control and Privacy Concerns
John Giannandrea, Apple’s machine learning chief, previously testified about a new feature in iOS 17 and iPadOS 17 that allows users to assign a different default search engine for private browsing. This gives Apple users more control over their search preferences. However, Apple doesn’t track how many users make this change due to privacy considerations.
PREDICTION: Google’s $15B deal with Apple to be the default search on iPhone will be re-negotiated and be a bidding war between MSFT/Bing and Google.
— Alexandr Wang (@alexandr_wang) February 7, 2023
It will become at least $25B, if not more.
If MSFT is willing to spend $10B on OpenAI, they’ll spend even more here.
Conclusion of the Antitrust Trial
The ongoing antitrust trial, US v. Google, explores the dynamics of Apple and Google’s search agreement. It raises questions about competition in the search engine market and the terms of their partnership.
As the trial continues, the implications for the tech industry and consumers remain significant. Apple and Google’s role in shaping the default search experience on mobile devices is at the heart of the debate.
