On September 12, 2023, in the U.S. District Court in Washington D.C., Eddy Cue, Apple’s senior vice president of services, testified regarding Apple’s decision to make Google the default search engine for iPhones and Macs.
Cue highlighted that Google outperforms competitors, suggesting there are no valid alternatives for internet search.
This antitrust trial, one of the most significant in a quarter-century, has the U.S. Department of Justice accusing Google of stifling competition. The crux of the accusation is Google’s supposed strategy of paying top tech companies, such as Apple and Verizon, to ensure its search engine remains dominant on devices.
Google, in response, has emphasized the superior performance of its search engine and highlighted how users can easily switch to other search options if they desire. This perspective was also supported by Cue during his testimony, reinforcing the argument that Google excels in its domain.
Mikhail Parakhin, currently leading Microsoft’s advertising and web services, commented on Google’s self-reinforcing market position. As Google handles more searches, it accumulates more data, enabling consistent refinement and enhancement of search results. From his unique experience as the former CTO of Russian search engine Yandex, he noted that in Russia, when Android devices offered users a choice in search engines, Yandex’s market share dramatically increased from 30% to 55%.
Contributing to the debate, a behavioral economist pointed out that having Google as the default fosters inertia among users, making them less likely to try alternative search engines. This inertia stems largely from established user habits. Additionally, DuckDuckGo’s founder discussed the difficulties his search engine faces, attributing Google’s revenue-sharing agreements with major tech companies as a prominent obstacle, especially considering their smaller market presence.The resolution of this trial could usher in significant changes for the tech sector. If U.S. District Judge Amit Mehta concludes that Google has breached antitrust laws, a follow-up trial will decide on the actions required to curtail its market dominance. These actions might include restrictions on Google forming default search agreements with corporations such as Apple.