At any point of the digital transition,…
Wednesday, October 21, 2020, 12:06 GMT
Apple CEO Tim Cook and Google CEO Sundar Pichai met in 2018 to negotiate the deal, the US government said. After that, a senior Apple employee who didn’t want to be called wrote to his Google colleagues, “We expect our job to be like a company.”
The U.S. Department of Justice has quoted internal Google reports that for the search engine, the contract with Apple is a “powerful sales source.” About half of Google’s search traffic in 2019 was sourced from Apple goods, according to the litigation.
Many of these specifics have not been released previously, which may reinforce the arguments of the US government that Google uses these arrangements to prevent rivals from browsing which limit customer options. Google argued that the US government’s case was “seriously flawed,” and that it would harm the rights of users and “artificially help” low-quality search goods.
The US Department of Justice gave specific attention to the compromise concluded in the case between Apple and Google, claiming that the compromise “for a long time robbed Google’s search market rivals of an significant sales platform.”
Google costs Apple billions of dollars annually to make its search products the default search engine for Apple’s mobile devices, according to analyst reports. This means that the default search engine set within the Safari browser is Google search when users purchase a new iPhone or other Apple smartphones. U.S. according to Apple users may also opt to manually turn to Bing, Yahoo Search or DuckDuckGo from Microsoft, but “few individuals do this, making Google the de facto exclusive search engine on Apple computers.”
In the case, the US Department of Justice reported that it is expected that Apple will earn 8 billion to 12 billion U.S. dollars in sales per year from Google under this deal. And the income from this search market transaction from Apple is part of the growing service business of the firm, a crucial metric that Apple has often highlighted in recent years to investors and analysts.
“By paying Apple some of the monopoly rent it earns from advertisers, Google has merged the financial benefits of Apple with its own policies and set the price of its advertisement market incredibly high,” the U.S. Department of Justice said.
Google is also the main search engine for Siri and iOS device searches as part of the arrangement, thereby replacing Apple’s Microsoft arrangement in 2017.
During the initial system configuration process, Apple does not offer a way for users to switch search engines, nor does it suggest that users switch search engines when they first use the Safari browser on Apple computers.
Apple said that users can also use third-party search apps, third-party voice assistant apps, or visit other search engine websites in addition to changing the default search engine after setting it.
In 2019, Kyle Andeer, the chief enforcement officer of Apple, said at a U.S. “Congressional hearing that the company” had carried out a public comparison to understand what is best for users, and Google has always been preferred by consumers.