Apple has decisively turned down Microsoft’s offer to replace Google as the default search engine on its devices. This decision cements Google’s stronghold in the search engine market. Despite Microsoft’s efforts to make Bing Apple’s default search engine, Apple continues to favor its profitable partnership with Google, which recently earned the tech giant $26 billion. This preference highlights Google’s superior performance and popularity among Apple users.
Google’s Monopoly Under Legal Scrutiny
Judge Amit Mehta has ruled that Google operates as a monopolist in the ongoing U.S. antitrust case, citing its enormous scale and financial resources. This ruling brings renewed attention to Google’s dominance in search and its significant deal with Apple. According to Judge Mehta, Apple’s choice to keep Google as its default search engine reflects the market’s perception that Google is the only viable option.
Google’s Longstanding Agreement with Apple
Google has invested heavily to maintain its status as the default search engine on Apple devices. In 2021, Google paid a staggering $26 billion to Apple, emphasizing the strategic importance of this deal for both companies. Accusations of antitrust violations have emerged, with claims that Google previously paid about $15 billion to secure its search dominance.
Bing’s Struggles to Compete
Despite Microsoft’s efforts, Bing has not gained significant traction as an alternative to Google. Apple’s Senior Vice President of Services, Eddy Cue, made it clear that Bing was never a serious contender. Microsoft even offered to provide Bing for free, but this was insufficient to alter Apple’s stance. Cue remarked, “I don’t believe there’s a price in the world that Microsoft could offer us. They offered to give us Bing for free. They could give us the whole company.”
Challenges Faced by Bing
In 2018, a potential deal for Apple to acquire Bing fell through due to concerns about Bing’s search quality. A 2021 study by Apple further confirmed that Bing lagged behind Google in several critical areas, despite performing better in desktop user interface. Overall, Google’s superior performance across various benchmarks solidified its position as Apple’s preferred search engine.
Microsoft’s Persistent Efforts
During Google’s antitrust trial last year, Microsoft CEO Satya Nadella expressed frustration over the exclusive deal between Google and Apple, arguing that it hindered Bing’s growth. Nadella revealed that Microsoft was willing to pay up to $15 billion annually to secure a similar agreement with Apple. Microsoft even proposed sharing 100% of Bing’s revenue with Apple, but this offer was rejected due to concerns about Bing’s revenue potential.
Apple’s Stance on Google
Apple’s Senior Vice President of Services reiterated that Google’s search engine remains the best choice for its users. “It’s a great product for our customers, and we wanted our customers to know that they’re getting the Google search engine. It’s a symbiotic relationship. Google is the best search engine,” he stated. This partnership not only ensures access to top-tier search technology but also secures a substantial revenue stream for Apple.
Concerns About Revenue and AI Future
Switching to Bing would require Apple to end its current deal with Google, potentially jeopardizing the company’s revenue, as noted by Apple CEO Tim Cook. Despite Microsoft’s advancements in artificial intelligence (AI) and Bing’s recent growth to over 140 million daily active users, Apple remains skeptical that AI will soon revolutionize search. Judge Mehta also suggested that “AI may someday fundamentally alter search, but not anytime soon.”
