Unsealed testimony from an Apple senior vice president reveals that the company had considered challenging Google’s dominance in the search sector by acquiring Microsoft’s search engine, Bing. This revelation provides a rare glimpse into the behind-the-scenes maneuvering in an industry largely dominated by Google. However, Apple ultimately decided against this move to maintain its lucrative revenue-sharing agreement with Google. It is also revealed that other major smartphone makers have similar agreements with Google. The unsealing of this testimony has been highly anticipated in the ongoing landmark antitrust trial against Google.
The testimony further sheds light on Apple’s consideration of launching its own search engine and its efforts to intercept search queries through its Safari search engine with the “Safari Suggestions” feature. The company viewed this as an opportunity to gain an advantage over Google. Additionally, Apple had discussions with Microsoft in 2018 about the possibility of acquiring Bing. However, after evaluating their options, it was concluded that an acquisition of Bing was not the right decision for Apple. This testimony highlights the extensive consideration and strategic analysis that took place within Apple.
Furthermore, the unsealed transcript reveals that Apple leveraged Microsoft’s Bing as a bargaining chip during negotiations for its revenue-share agreement with Google. This agreement, estimated to be valued at up to $19 billion this year, ensures that Google search remains the default search engine on iPhones and other Apple devices. The trial has drawn criticism for its lack of transparency, but this recent revelation marks a step towards making more of the testimony public. Overall, the testimony provides insight into the competitive dynamics and strategic choices made by Apple in relation to Google’s dominant position in the search sector.
