In a recent statement, Microsoft’s CEO, Satya Nadella, taking a shot at tech giant said that Apple deals are responsible for Google’s dominance in search engine race. Nadella made this assertion during his testimony at the ongoing Google vs. U.S. Department of Justice antitrust trial, as The Wall Street Journal reported.
Nadella explained that Google’s status as the default search engine on all Apple devices, notably Safari, has cultivated a habitual preference among users. “You get up in the morning, you brush your teeth, and you search on Google,” quipped Nadella, emphasizing the ingrained nature of this choice. He further emphasized that Google’s near 90 percent market share enables it to refine search results, reinforcing its monopoly. Nadella dismissed the notion of true choice in the search engine landscape as “bogus.”
Despite Microsoft’s efforts to bolster Bing’s market share through integrating OpenAI’s chatbot technology, Nadella expressed doubt about AI’s capacity to reshape the market, given Google’s enduring distribution advantage. He voiced concerns about being caught in a vicious cycle where defaults favor Google.
Eddy Cue, iTunes chief, testified last week, shedding light on Apple’s rationale for selecting Google as its default search engine. According to Cue, Apple’s choice of Google is based on the belief that it is the best option. It’s worth noting that Google pays Apple substantial sums annually to maintain this default status.
In 2020, Microsoft proposed Bing as a potential acquisition target for Apple, but negotiations faltered. Concerns arose about Bing’s competitiveness against Google Search, compounded by the revenue Apple reaps from Google’s payments.
Nadella’s assertion that competing with Google seems daunting, given its entrenched position as Apple’s default search engine, is difficult to dispute. The potential exception lies in Apple’s decision to venture into its search engine development, a rumor Mark Gurman reiterates in Bloomberg’s Power On newsletter.
Apple’s AI chief, John Giannandrea, leads a search team within the company that has crafted a next-gen search engine for Apple apps, codenamed “Pegasus.” While it doesn’t match Google’s capabilities yet, it could be the foundation for a full-fledged search engine, offering enhanced privacy and integration with Siri and Spotlight.
As the antitrust trial unfolds, the outcome remains uncertain. If regulators scrutinize the lucrative Apple-Google deal, the potential financial repercussions could motivate Apple to intensify its pursuit of an independent search engine solution.
In conclusion, Apple’s arrangement with Google has played a pivotal role in solidifying Google’s search dominance. This situation may only change if Apple takes the search engine reins itself.
What do you think is it Apple deals which are responsible for Google’s dominance in search engine race?