Apple‘s lucrative deal with Google to make Google the default search engine on Apple devices is facing increased scrutiny amid an ongoing antitrust case against Google. The deal, valued at around $20 billion in 2022 alone, has become a central point of contention in the Department of Justice’s (DOJ) case against Google’s dominance in the search engine market. Apple’s Senior Vice President of Services, Eddy Cue, recently provided insight into why Apple wouldn’t venture into developing its own search engine.
This statement, first reported by Reuters, is Apple’s attempt to defend Google. Cue’s stance is in line with the company’s long-held position. The filing, submitted to a U.S. federal court in Washington, D.C., details several reasons why Apple is satisfied with its current arrangement with Google and explains the company’s disinterest in building its own search engine.
Cue explains that the court’s proposed remedies in the Google case suggest that Apple could “develop its own search engine or enter the Search Text Ad market” and compete with Google. However, Cue states that “that assumption is wrong. He emphasizes that building a search engine from scratch would require a significant allocation of resources, diverting funds and personnel from other key areas of focus. Cue says the move would cost “billions of dollars and take many years.” He also points out the inherent economic risks of such an undertaking, especially given the rapid advances in artificial intelligence that are changing the search landscape.
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Another consideration, as Cue articulated, is the need to create a targeted advertising platform to support a viable search engine. He notes that Apple lacks the infrastructure and specialized staff needed to manage such an operation. “A viable search engine would require building a platform to sell targeted advertising, which is not a core business of Apple,” Cue said. “Apple does not have the volume of specialized professionals and significant operational infrastructure needed to build and run a successful search advertising business. Although Apple does have some niche advertising, such as on the App Store platform, search advertising is different and outside of Apple’s core expertise. Building a search advertising business would also need to be balanced against Apple’s longstanding privacy commitments.”
This is consistent with Apple’s longstanding focus on user privacy, a commitment that could be compromised by extensive targeted advertising practices. Cue also emphasized that while Google is the default search engine, users remain free to choose alternatives such as Yahoo!, Microsoft Bing, DuckDuckGo, or Ecosia.
The DOJ also suggested remedies such as allowing Google to remain the default search engine on Apple devices only if Apple forgoes the advertising revenue it receives from Google. Another potential remedy was to ban future deals between the two tech giants. Cue argues against these proposals, asserting Apple’s right to determine the collaborations that best serve its users. In a filing, Apple said that “Google can no longer adequately represent Apple’s interests: Google must now defend against a broad effort to break up its business units.” Cue believes that if Apple were to implement any of the DOJ’s remedies, it would “hamstring Apple’s ability to continue delivering products that best serve its users’ needs.“
Earlier this year, during the DOJ’s antitrust trial against Google, the court indicated that the default search engine deal between Google and Apple may be illegal. Cue’s statement was also a call for Apple to participate in Google’s upcoming U.S. antitrust trial over online search. “Only Apple can speak to what kinds of future collaborations can best serve its users,” Cue wrote. “Apple is relentlessly focused on creating the best user experience possible and explores potential partnerships and arrangements with other companies to make that happen.”
In 2023, the DOJ said Google knew it was violating antitrust laws and then tried to cover it up. Apple’s search results deal was used as evidence. This revelation adds another layer of complexity to the ongoing investigation into the relationship between Apple and Google.
