Technology Apple's Eddy Cue explains Why Google is iPhone's default Search Engine

[CyberTech]

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https://www.macrumors.com/2023/09/26/apple-on-why-google-is-default-on-iphone/

Apple's services chief Eddy Cue today testified in the antitrust trial between the U.S. Department of Justice and Google, answering questions about a deal that sees Google set as the default search engine on the iPhone, iPad, and Mac.

According to a report from The Verge today, Google pays Apple billions of dollars per year in order for Google to be set as the default search engine on Apple platforms. The exact amount that Google pays Apple has not been publicly disclosed during the trial, as a lot of the testimony in the case has taken place behind closed doors.

Cue reportedly last negotiated the deal between Apple and Google in 2016. When asked why Apple chose Google as its default search engine, Cue said "there wasn't a valid alternative to Google at the time," and he said there still isn't one.

"We make Google be the default search engine because we've always thought it was the best," added Cue. "We pick the best one and let users easily change it."

Cue acknowledged that Apple feels it is more committed to privacy than Google, but argued that the deal between the two companies requires Google to allow users to search without logging in, and said that Apple has built several privacy protections into its Safari web browser in order to ensure that users are safeguarded.

Cue also admitted that Apple does not allow users to change the default search engine during the iPhone's setup process, but he said this decision supports Apple's goal of getting users "up and running as fast as possible."

To change the iPhone's default search engine at any point after setup, users can simply open the Settings app, tap Safari, tap Search Engine, and select one of the available options: Google, Yahoo, Bing, DuckDuckGo, or Ecosia.

The Verge and The New York Times have additional coverage of Cue's testimony.

 

[Ink]

Apple takes privacy very seriously.

 

[CyberTech]

The Department of Justice’s legal fight with Google has revealed that Apple explored acquiring Bing from Microsoft, and held calls with DuckDuckGo about using its search engine for Safari’s private browsing mode.

While Google’s search engine has for years been the default on Apple’s devices, newly unsealed court testimonies reveal that Apple held talks with both Microsoft and DuckDuckGo to use their search engines across Apple devices, and in Microsoft’s case even potentially buying Bing, The Washington Post and Bloomberg report. The potential of a Microsoft deal also served as a useful bargaining chip for Apple when negotiating its lucrative search deal with Google.

The details came to light as part of the Department of Justice’s landmark antitrust case against Google which accuses the search giant of abusing its dominance of the search market. A key element of this trial is an agreement that sees Google pay Apple billions of dollars a year in a revenue sharing deal to make Google search the default across Apple’s devices. Apple has defended the deal, saying that there wasn’t a viable alternative search engine available.

News that Apple considered purchasing Bing emerged in a report from Bloomberg last week, but the newly unsealed testimony of Apple senior vice president John Giannandrea sheds more light on the discussions. Apple met with Microsoft in 2018, and later in 2020 to discuss a potential Bing acquisition or joint venture, Bloomberg reports. The company even studied the quality of Bing’s search results compared with Google, but found Bing generally performed worse except for desktop searches in English.

The rest

Details of Apple’s talks to replace Google with Bing and even DuckDuckGo revealed in unsealed court testimony

A potential acquisition of Bing was even discussed.

www.theverge.com

 

[CyberTech]

It's widely known that Apple and Google have a considerable monetary agreement that ensures Google's position as the default search engine on Apple's iOS devices, but neither company reveals the amounts involved. In 2021, financial advisor Bernstein suggested Google was paying Apple as much as $10 billion a year to maintain the status quo. However, in a new investor note, the analyst claims Google's payment to Apple is now between $18 billion and $20 billion.

First reported by The Register, Bernstein published a report assessing the potential implications for Apple of the US government's ongoing antitrust trial against Google, with the Department of Justice considering Google's Information Services Agreement (ISA) with Apple as evidence that it has a search engine monopoly.

"We believe there is a possibility that federal courts rule against Google and force it to terminate its search deal with Apple," said Bernstein in the report seen by The Register. "We estimate that the ISA is worth $18B-20B in annual payments from Google to Apple, accounting for 14-16 percent of Apple's annual operating profits."

Bernstein says Google pays out 22 percent of total ad revenue under its traffic acquisition costs (TAC) and estimates Apple likely receives around 40 percent of this. Bernstein bases its numbers on Apple's public filings as well as a bottom-up analysis of Google's traffic acquisition costs. The DoJ has said in the trial that it thinks Apple receives around $10 billion from the ISA with Google, although its information comes from external sources.

"Importantly, Google is on trial, not Apple, and Apple could (in theory) partner with another search engine to be the default (and/or retain the agreement with Google outside the US)," the report states. "One more likely scenario is that Apple offers a choice screen. We note that Apple controls access to its installed base, which generates ~$60B + in advertising revenues, and accordingly, we believe that Apple would continue to command a commission (in the 25-30 percent range) for providing access to those search advertising revenues.
"Moreover, introduction of a choice screen could offer Apple the opportunity to potentially launch its own search engine as an option – something it could likely not do today without raising the eyebrows of regulators," the Bernstein report adds.

Last month, the trial revealed that Microsoft considered selling its Bing search engine to Apple. Had the acquisition happened, Bing would have replaced Google as the default search engine on Apple devices.

Experts say there is a chance Google could lose the case, which would put Apple's lucrative agreement, which has been in place for a decade, in significant jeopardy. However, a ruling in the case isn't expected before next year, and the likelihood is that proceedings will be extended by the lengthy appeals process.

Source

Google Pays Apple $18B to $20B a Year to Be Default iOS Search Engine

It's widely known that Apple and Google have a considerable monetary agreement that ensures Google's position as the default search engine on...

www.macrumors.com

 

[CyberTech]

As Google battles an antitrust lawsuit from the U.S. Department of Justice, secrets about its search deals with Apple have been leaking out. We previously learned that Google is paying Apple billions of dollars to be the primary search engine on Apple devices, and now, Bloomberg has shared the total percentage of Google's revenue that Apple earns.

Google pays Apple 36 percent of the total revenue that it earns from searches conducted on the Safari browser on the iPhone, iPad, and Mac, with the number shared by an economics expert testifying on Apple's behalf. According to Bloomberg, Google's main lawyer "visibly cringed" when the revenue data was shared, as it was meant to remain confidential.

Last month, wealth management company Bernstein suggested that Apple is getting anywhere from $18 billion to $20 billion per year, representing somewhere around 15 percent of Apple's total annual operating profits.

Full article

Apple Gets 36% of Google's Safari Search Revenue

As Google battles an antitrust lawsuit from the U.S. Department of Justice, secrets about its search deals with Apple have been leaking out. We...

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