Business

Apple and Google Join Forces to Defend Search Deal Against Regulatory Scrutiny

Apple and Google's Joint Defense Strategy

Apple Inc. and Alphabet Inc.'s Google have agreed to 'support and defend' their lucrative search engine deal against government scrutiny, according to Apple's Senior Vice President of Services, Eddy Cue. This provision was included in their 2016 renegotiated contract, which was disclosed during an antitrust trial in Washington federal court.

Apple, Google agreed to ‘defend’ search deal from regulators

Cue, the architect of the agreement, revealed that the joint defense clause was added at Google's request, though he could not speak directly to its inclusion due to legal handling. This move came amid the European Union's investigation into Google's dominance in online search.

Apple's Defense of the Agreement

Cue defended Apple's arrangement with Google, stating that it was the best choice for customers to have Google as the default search engine. He emphasized that there was no valid alternative at the time and that Apple saw no need to develop its own search tool, as Google clearly is the best option.

The agreement, which has been revised several times since Google first became the default option in the Safari browser in 2002, was extended in 2021. Google pays Apple billions of dollars for this prominent position on products like the iPhone, making the agreement of particular interest to the government.

Potential Alternatives and Future Developments

During his testimony, Cue mentioned that while he didn't seriously consider walking away from the negotiation, Apple might have created its own search engine if the deal had collapsed. Part of his testimony was closed to the public due to internal company information that Apple and Google want to keep secret.

Cue also discussed Apple's search arrangements with other companies, including Microsoft Corp.'s Bing, Yahoo, DuckDuckGo, and Ecosia, which provide non-default options in the Safari internet browser. Apple gets a slice of the advertising revenue generated when users select these search engines as their main option.

A new feature in iOS 17 and iPadOS 17 allows users to assign a different default search engine for private browsing, making it easier for Apple users to switch between Google and another option. However, Apple doesn't track how many customers actually make the change to a non-Google search engine due to privacy concerns.