Microsoft CEO Satya Nadella took the stand on Monday in the ongoing Google antitrust trial in Washington DC. His testimony shed light on alleged unfair trade practices by Google and the substantial role that tech giant Apple plays in the search engine landscape.
During his testimony, Nadella accused Google of employing unfair tactics to stifle competition by striking deals with smartphone manufacturers. He raised questions about the lucrative arrangement between Google and Apple, suggesting that Apple uses Microsoft’s Bing as leverage to increase the payments it receives from Google.
Nadella’s notable statement during the trial was, “Do you think Google would continue to pay Apple if there was no search competition? Why would they do that?“
Apple receives a staggering $8 billion annually ($18 billion to $19 billion this year, as per Washington Post) from Google for allowing Google Search to be the default search engine on its devices, including iPhones, iPads, and Macs. This partnership dates back to 2002 when Google became the default search engine in Apple’s Safari browser and has seen multiple revisions. Eddy Cue, Apple’s senior vice president of services, confirmed during his testimony last week that the most recent contract extension with Google occurred in 2021, coinciding with the Justice Department’s antitrust case against the tech giant.
Cue remarked, “I don’t think there is anyone out there that is as good as Google in searching.“
Nadella did not hold back in his criticism of Google, stating, “The entire notion that users have choice, and they go from one website to another website … is completely bogus… Defaults are the only thing that matters in changing search behavior.” He emphasized the significance of distribution and expressed Microsoft’s willingness to pay a premium to Apple if Bing were to become the default search engine on iPhones and Macs, a move that, according to Nadella, would be a “game changer” for Bing.
As the Google antitrust trial continues, it remains to be seen how these revelations and allegations will impact the ongoing legal battle and the broader landscape of competition in the tech industry.
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