Microsoft Exec Claims Apple Was Never Serious About Replacing Google Search With Bing

Microsoft executive Mikhail Parakhin testified during Wednesday's antitrust trial against Google in the US District Court in Washington that Apple's consideration of replacing Google with Microsoft's Bing as the default search engine on Macs and iPhones was not a genuine endeavor but rather a negotiating tactic to secure larger payments from Google.

According to the Associated Press, Parakhin claimed that Apple benefits more financially from Bing's existence than Bing itself.

Google's Antitrust Trial

Apple is believed to receive an annual sum ranging from $15 to $20 billion through revenue-sharing arrangements with Google. According to the report, this exchange allows Google's search engine to maintain its coveted default status on Apple devices, with revenue stemming from user interactions on search result advertisements.

The Department of Justice (DOJ) asserted that Google employs comparable contracts to exclude competing search engines such as Bing and Yahoo, impeding competition and innovation. The trial, which started on September 12, is projected to extend through November.

Alexander Austin, the founder of startup Branch Metrics, provided testimony asserting that Google's exclusive agreements with phone manufacturers and companies posed significant obstacles to his company's pursuit of promoting a search engine for smartphone apps.

These agreements compelled Branch Metrics to curtail the functionalities of its product to avoid conflicts with Google's arrangements with entities like Samsung and Verizon. Consequently, this reportedly limited Branch Metrics' capacity to monetize its app search engine effectively.

Google's Defense

Google's defense contends that advancements in artificial intelligence negate the need for extensive user data to enhance search results. Microsoft CEO Satya Nadella's comments on AI's transformative potential were introduced as part of Google's argument.

However, Parakhin likened the current state of AI to driverless cars, asserting that while it holds promise, it has not yet reached its full potential. US District Judge Amit Mehta is not expected to deliver a ruling in the antitrust case until early next year.

If Google is found to have violated antitrust laws, a subsequent trial will determine the measures needed to limit its market influence. One potential option is to prohibit Google from compensating Apple and other entities to maintain its status as the default search engine.

During the trial, Apple's Senior Vice President of Services, Eddy Cue, defended the decision to designate Google as the default search engine, emphasizing that no alternative matches Google's proficiency in the realm of internet searches.

The Department of Justice argued that Google's dominance has been fortified through financial agreements, while Google maintained that users have the freedom to easily switch to alternative search engines.