Google is in trouble in the United States. In fact, the firm lost its antitrust lawsuit, which pitted it against the American government. And now, justice must decide on the “remedies” to apply to prevent illegal behavior. As we mentioned in a previous article, the government has requested a dismantling of Google which would force it to part with its Chrome browser. But it is also possible that American justice will simply end the agreements between Google and entities like Apple and Mozilla.
As a reminder, Google is offered as the default search engine on Safari and shares part of its advertising revenue with Apple. And while justice has yet to decide on the measures, Apple has intervened to defend its interests. As our colleagues at MacRumors explain, this is a declaration filed in the Federal Court in Washington DC. In it, Eddy Cue, senior vice president of Apple Services, speaks out against one of the arguments according to which Apple would develop its own search engine if it were not for these agreements with Google.
“Apple’s witnesses can present testimony and evidence explaining why this assumption is incorrect. This evidence would cover the challenges Apple would face in entering the search engine market, the reasons why Apple has so far chosen not to develop a search engine, and the reasons why it is unlikely that Apple decides to create a search engine in the future, regardless of the remedies ordered in this case”we read in the statement.
Billions of dollars of investment
According to Eddy Cue, Apple is focusing on other growth drivers. Developing a search engine would require many employees and billions of dollars of investment, while taking several years. He also mentions the risk linked to the fact that the online search market is evolving rapidly with recent developments in generative AI. Additionally, Apple would be required to create a targeted advertising platform capable of monetizing a search engine. “Apple does not have the number of specialized professionals and significant operational infrastructure necessary to create and manage a successful search advertising business”says Eddy Cue.
In any case, the agreement it has with Google is very lucrative for Apple. This indicates that in 2022, the Mountain View firm has paid nearly $20 billion. Otherwise, Apple is currently interested in similar partnerships in the area of generative artificial intelligence. As a reminder, Apple Intelligence allows ChatGPT to be integrated with Siri. This agreement with OpenAI can boost sales of ChatGPT Plus subscriptions which, when paid from an iPhone, generate commissions for the App Store. And Apple has already indicated that it would like to see other chatbots integrate Apple Intelligence, including Google’s Gemini AI.
- In the context of the case between Google and the American government, Apple intervened to defend its interests
- This is because Google is Safari’s default search engine, which allows Apple to receive annual payments from Google
- Apple indicates, in a declaration sent to the American justice system, that it does not intend to create its own search engine, regardless of the outcome of the trial
