Over the past few years, rumors about Apple developing its own search engine have intensified, especially amid its ongoing antitrust scrutiny over its deal with Google. However, an Apple executive is now clarifying the situation. Eddy Cue, Apple's senior vice president of services, stated it is incorrect for people, reports, and the public to assume the company is working on a new search engine.
Google has faced criticism for monopolistic practices, which helped solidify its dominance as the leading search engine by forming lucrative partnerships with major companies. The U.S. Department of Justice has argued that these practices stifled competition.
Apple Responds to Search Engine Speculation
In a court filing dated Dec. 23, Cue addressed the speculation head-on, emphasizing that Apple is not developing a search engine. Cue stated it is "wrong" to assume the company is working on such a project. The executive explained that the rumors likely stemmed from assumptions made in the antitrust case, particularly regarding Apple's "Information Services Agreement" with Google. This agreement reportedly generates between $8 billion and $12 billion annually for Apple, representing a 36% share of Google's ad revenue derived from searches conducted via Safari.
Plaintiffs in the case had suggested that Apple might create a competing search engine if its agreement with Google were terminated. Cue refuted this claim, asserting that Apple's current focus is on other areas of innovation and growth, rather than redirecting resources toward developing a new search platform.
Revenue Sharing with Other Search Engines
Cue further clarified that Apple's agreements extend beyond Google, noting that other search engines, including Microsoft Bing, Yahoo, DuckDuckGo, and Ecosia, also participate in revenue-sharing arrangements when users set them as defaults on Apple devices. These deals, Cue argued, demonstrate Apple's neutrality in allowing users to choose their preferred search provider.
Impact of AI and Market Dynamics
Cue highlighted additional reasons for Apple's decision not to pursue a search engine, including the evolving role of artificial intelligence in the search landscape. He characterized the sector as "risky" and said Apple is prioritizing its investments and workforce in areas better aligned with its long-term objectives.
DOJ vs. Google: Antitrust Case and Implications
The DOJ's antitrust case against Google is one of the most significant in recent years, targeting the company's monopolistic practices in securing default search engine status on major platforms. Google's arrangements with device manufacturers and browsers, including Apple, have been accused of stifling competition and cementing its dominance in the market.
Apple's partnership with Google has been particularly lucrative, as the Mountain View-based tech giant's search engine remains the default on iPhones and other Apple devices. However, the legal spotlight has brought renewed attention to the dynamics of this collaboration, prompting Apple to address misconceptions about its intentions.
The DOJ's case against Google concluded earlier this year, with the court ruling that the company engaged in monopolistic practices. While the specific remedies are still under deliberation, Apple's public clarification aims to quell persistent speculation about its potential entry into the search engine market. Cue's statements reaffirm the company's commitment to its existing partnerships and strategic priorities.
