Apple steps in to defend Google, saying it ‘has no plans to create its own search engine’
what you need to know
- Apple is seeking to defend its deal with Google, which provides revenue sharing through search.
- Previously, the court found that Google had an illegal monopoly position, and the U.S. Department of Justice threatened to divide Google’s business.
- Google has since proposed its own remedies to satisfy the court, saying its extreme measures could lead to a worse product for consumers.
Google’s recent legal troubles have taken an interesting turn as Apple filed a motion to attend an upcoming hearing to defend the company and its joint search deal (Reuters). This follows a recent proposal by the U.S. Department of Justice to break up Google’s business through the possible sale of Chrome and a ban on search distribution agreements with companies such as Apple.
Apple’s statement explains why its deal with Google would be good for both companies and that the Justice Department’s proposed remedies to block such a deal would do more harm than good. Apple said that making Google Search the default search engine on Safari provides a better experience for users, and that removing it would “impair Apple’s ability to continue to deliver products that best meet the needs of our users,” adding that its customers “Prefer Google.”
Apple earns billions of dollars in revenue from Google each year through ad-sharing deals ($20 billion by 2022). The company argued that banning such transactions would either give Google free access to its customer data, or Apple would have to remove Search as the default engine on its browser, saying that could lead to a worse experience for users.
Cupertino also argued that the Justice Department’s proposed remedy assumes Apple is even interested in developing its own search engine, but it said that’s not the case. According to Apple, doing so would require spending a lot of time, money and resources on things that are not part of Apple’s core business.
A hearing on the proposal is scheduled for April, according to Bloomberg.
After ruling earlier this year that Google held an illegal search monopoly, the search giant lambasted the Justice Department’s “extreme” proposal while also fighting back with its own remedies. This provides partners with additional flexibility in selecting their default search engine across devices. OEMs also have the flexibility to preload multiple search engines, which Google says can provide “more bidding opportunities for competitors like Microsoft.”
While Google believes its proposal will address the court’s findings, the company still appears unwilling to implement these remedies because it would “impose onerous restrictions” on its partners.
