Antitrust Lawsuit Threatens Apple's Lucrative Deal with Google

[MacRumors]

Apple's deal with Google that makes it the default engine on Safari faces uncertainty as the U.S. Department of Justice's antitrust lawsuit looms, The Information reports.

Apple's contract with Google, which ensures that Google's search engine is the default on Apple's Safari browser, has been a significant source of revenue. In 2022, the arrangement reportedly netted Apple over $20 billion, an amount derived from 36 percent of the ad revenue generated by searches on Safari, as revealed in court documents.

The agreement has substantial financial implications for both companies. For Apple, the payments from Google constitute an important revenue stream as a significant proportion of its profits. If the court rules against Google, it could lose access to approximately 70 percent of iPhone searches. This would significantly impact Google's mobile search advertising revenue, which was a major contributor to its $207 billion in search ad revenue in 2023.

Google has been working to reduce its reliance on the deal. The company has been actively encouraging iPhone users to switch from Safari to its own apps, Google and Chrome. Google has invested heavily in enhancing its mobile apps with features such as the Lens image search function and the Discover feed, which surfaces personalized content. In 2022 and 2023, Google launched extensive TV and online advertising campaigns showcasing exclusive features available only on its apps. However, over the past five years, Google has only managed to increase the percentage of iPhone searches conducted through its apps from 25 percent to the low 30s.

Earlier this year, Google hired Robby Stein, a former Instagram and Yahoo executive, to spearhead efforts to increase the adoption of its apps among iPhone users. Stein's strategies include exploring the integration of generative AI to enhance the appeal of Google's mobile apps. The company now wants to double the number of Google searches performed outside Safari, even as the number accomplished in the Google and Chrome apps stalled last year.

The shift is particularly important to Google in an effort to mitigate the impact of the potential outcome of the U.S. Department of Justice's antitrust lawsuit. A ruling against Google would also set a precedent for how Apple's default settings and competitive practices are regulated.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Antitrust Lawsuit Threatens Apple's Lucrative Deal with Google

 

[now i see it]

Apple: We need our monopoly to make big bucks.

Google: We need Apple’s monopoly to make big buck

 

[Biro]

There are at least five search engine options built into Apple devices. So what if Google is the default? Does it require too much brain power or physical effort to go into settings and change it if one desires? If the device owner is too clueless to figure it out - or to even ask if it’s possible - then they deserve what they get.

 

[HobeSoundDarryl]

Pass the popcorn: with a new "common enemy," Apple's halo is about to encompass Google in this batch of responses... like it once propped up the collective view of AT&T when they were the ONLY service option for the first iPhones. 🍿

 

[dumastudetto]

There are at least five search engine options built into Apple devices. So what if Google is the default? Does it require too much brain power or physical effort to go into settings and change it if one desires? If the device owner is too clueless to figure it out - or to even ask if it’s possible - then they deserve what they get.

Google pays all that money precisely because most people don't know or care to change it.

 

[hagjohn]

Another cash grab.

 

[Biro]

Google pays all that money precisely because most people don't know or care to change it.

If they don’t care then there’s no injury and no problem.

 

[BC2009]

Honestly, Google has the best search engine hands down. I tried using Duck Duck Go for years for privacy reasons. I would fall back to Google.com when Duck Duck Go (Bing) would fail to produce good results. Eventually i just got tired of so frequently having to use Google.com instead of the Safari address bar for searching and switched back.

Competition is supposed to produce better products but somehow Google has managed to maintain the best search engine while holding a monopoly. I don’t see how giving lazy competitors like Bing a crutch is going to improve competition. Why would Microsoft invest more in Bing if they get a revenue increase by virtue of a ruling against Google?

 

[dumastudetto]

If they don’t care then there’s no injury and no problem.

That's to be decided.

Personally, I'd be delighted if Google was kicked out of the default iOS experience. It's not the best search engine anymore. It's a privacy nightmare. People can set Google if they want it - by default though, let's push search through a privacy-focused alternative.

 

[coffeemilktea]

Google launched extensive TV and online advertising campaigns showcasing exclusive features available only on its apps. However, over the past five years, Google has only managed to increase the percentage of iPhone searches conducted through its apps from 25 percent to the low 30s.

I remember a time when it felt like everything Google did was cool and exciting... but these days, they feel like someone trying way too hard to be one of the cool kids. 😬

 

[ghostface147]

Altavista for the win!

 

[vegetassj4]

I just use Excite for the true experience of the Interwebs

 

[switz]

I make a determined effort to avoid any contact with any Google product. From my on limited experience, the slimy company constantly tries to get any and all of my information.

And yes, it is so simple to choose a different search engine in both Safari and Firefox.

 

[Biro]

That's to be decided.

Personally, I'd be delighted if Google was kicked out of the default iOS experience. It's not the best search engine anymore. It's a privacy nightmare. People can set Google if they want it - by default though, let's push search through a privacy-focused alternative.

I’m curious. What do you think the best search engine is these days? I normally use Duck Duck Go (Bing search engine) for privacy reasons but often have to switch to Google to get meaningful results.

 

[dumastudetto]

I’m curious. What do you think the best search engine is these days? I normally use Duck Duck Go (Bing search engine) for privacy reasons but often have to swatch to Google to get meaningful results.

I use Kagi.

I agree about DuckDuckGo. I want to love it, but its results from Bing are often useless to me. It's my second choice though on privacy grounds.

Brave Search is OK in a pinch.

Google is last resort for me.

 

[anthogag]

Google sucks. Yes, making Google default for iPhone Safari is anti-competitive.

 

[Ramchi]

I never use Safari at all! I use Chrome or Edge!

 

[scorpio vega]

There are at least five search engine options built into Apple devices. So what if Google is the default?

I can’t even change spotlight to use bing because it’s forcing me to use google.

My iOS experience is gimped because I try never to use spotlight for quick searches because I refuse to use google.

Being default is fine. Being the only Choice I am being forced to use is not fine.

This is one of the few times I don’t mind the government stepping in to regulate this because google is terrible.

Honestly, Google has the best search engine hands down

If this was 2015-2017 sure.

Bing is doing just fine for me here in America and I have very little issues using it and I’m not having to worry about shadiness like I do with google.

The only thing Iwill say is google is slightly better at discoverability of new places but bing plus yelp makes that largely minor.

 

[szw-mapple fan]

If they don’t care then there’s no injury and no problem.

And that’s often how monopolies are formed. Individual consumers don’t consider the wider effect on the economy when they buy a product. They will get the one that’s on the shelf and most available especially if it's a necessity. In the end consumers as a whole will suffer.

 

[6787872]

just prompt the user.... 99% will choose google anyways

 

[timborama]

I never use Safari at all! I use Chrome or Edge!

Who cares. This issue is about the default search engine, not default browser.

 

[turbineseaplane]

There are at least five search engine options built into Apple devices. So what if Google is the default? Does it require too much brain power or physical effort to go into settings and change it if one desires? If the device owner is too clueless to figure it out - or to even ask if it’s possible - then they deserve what they get.

Here on this very forum we have people arguing that "it's too confusing" for users to be asked one time, at initial device setup, which browser they'd like as the default (in EU only so far)

So which is it?

Are people dumb as rocks and Apple has to decide everything for everyone?
or are they capable of making choices and handling a few preferences here and there?

I'm firmly in the camp of these things being little computers and people are more than capable of having some choices for how they would like to experience their devices.

 

[salz4life]

I miss Jeeves!

 

[GeoStructural]

This is completely a financial decision by both companies. It takes Apple nothing to put a splash screen and make you choose, but they won’t do it.

 

[szw-mapple fan]

My iOS experience is gimped because I try never to use spotlight for quick searches because I refuse to use google.

Spotlight doesn’t use Google. It used to use Bing but around 2015 or so they switched to a custom solution called AppleBot to crawl websites and return results for Siri and Spotlight. To verify I’ve tried comparing the results returned from both Spotlight and Google, and they don’t always match up.