According to the Wall Street Journal, Microsoft CEO Satya Nadella said today that he believes that the search engine deal between Apple and Google has made other search engines such as Bing Can’t compete with Google.
As Google became the default search engine for Safari on all Apple devices, people had grown accustomed to using it, Satya Nadella explained in testimony during the Google v. U.S. Department of Justice antitrust trial.
“You get up in the morning, brush your teeth, and then you Google it,” Satya Nadella said. “As habits form, the only way to change them is to change the default settings.”Satya Nadella went on to say that Google was able to use its roughly 90% market share to improve search results and further solidify its monopoly. He said it was “fake” that there was choice in the search engine market.
Microsoft has been trying to steal Google’s market share by adding OpenAI chatbot technology to Bing, but Nadella said it is unclear to what extent AI can reshape the existing market because Google’s distribution advantage will not disappear. . “I’m very worried about it,” he said. “As much as I’m enthusiastic about a new breakthrough in AI, the vicious cycle we’re trapped in is likely to intensify.”
Last week, iTunes CEO Eddy Cue testified at the trial and explained that Apple chose Google as the default search engine on its devices because the company “always thought it was the best.” Google does pay Apple billions of dollars a year to remain the default search engine, and Eddy Cue claims there is no effective alternative.
According to a previous report citing Bloomberg, Microsoft had approached Apple as early as 2020 and proposed Bing as a potential acquisition target, but negotiations between Microsoft executives and Eddy Cue have not made progress.
It’s worth mentioning that Bloomberg’s Mark Gurman said Apple has considered creating its own search engine. Such a solution would offer better privacy and deeper integration with Siri and Spotlight, and Apple has developed search tools for apps like the App Store and Apple TV.
Mark Gurman said Apple’s head of AI, John Giannandrea, leads a search team within Apple that has created the next generation search engine for Apple apps. The search technology, codenamed “Pegasus,” provides more accurate results.
